Admittedly, other countries, China in particular, have been steadily catching up. While the U.S. has lured foreign investors with its open economy and very low barriers to investments, businesses are turning to the East Asian giant to bolster sales as rising unemployment and government indebtedness erode confidence in developed nations.
In 2009, China overtook the U.S. to become the world's biggest auto market and companies from Kia Motors to VW have been investing billions into the country. For instance, Wolfsburg, Germany-based VW opened its first engine reprocessing plant in China in August and said it plans to invest $14.6 billion through its auto manufacturing ventures in the country by 2015.
Even if others are gaining ground, the U.S. is much more open to foreign direct investments than emerging economies like India, Russia, China and Mexico, according to the OECD's Foreign Direct Investment Restrictiveness Index.
Long-term interest rates are already low and they aren't doing much to spur economic growth. How will 'Operation Twist' change that?
