ABSTRACT
Both in creditor and in debtor countries, the problems of international investment are often misunderstood. Extreme views, diametrically opposed to each other, are frequently advanced. There are, on the one hand, those who believe that international movements of long-term capital are always undesirable, and, on the other, those who regard a large annual flow of capital between different countries as an essential feature of a healthy economic system. The dynamic economic world of the future will present innumerable opportunities for new industrial development in different countries, and so long as the savings available to finance such progress are unevenly distributed between countries, international investment must play an important part in world economics. But the economic world of to-day and the immediate future is and will be different in many ways from that of the past, and these differences may be expected to have considerable effect on the direction and volume of new international investment.
