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The United States is a multi-trillion dollar net debtor (i.e., its external wealth is negative). The United States has also had positive net factor income

The United States is a multi-trillion dollar net debtor (i.e., its external wealth is negative). The United States has also had positive net factor income from abroad for many years. A possible explanation for these patterns are

Select one:

large profits made by foreign firms in the US

a lower rate of return on US-owned foreign assets compared to foreign-owned US assets

a higher rate of return on US assets compared to foreign assets.

a higher rate of return on US-owned foreign assets compared to foreign-owned US assets

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