Exercise $2(10$ points$)$

$5.$ In the $1990$ s and the first decade of the $2000$ s$,$ investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many Americans were unhappy that this investment was occurring.

a$.$ In what way was it better for the United States to receive this foreign investment than not to receive it$?$

b$.$ In what way would it have been better still for Americans to have made this investment?