Now I would love to see what would happen if Vicky2 if the UK, US, and other major European powers invest in China using this mechanism. Obviously, foreign factories recruit local craftsman, who are being taxed by the local country and thus translates into higher revenue for the local country. Both countries need to be within the same Sphere of Influence.ĥ. The influx of capital led to Australians experiencing the highest per capita incomes in the world during the late 19th century. That can be attributed to foreign funds becoming more available to Australia. All foreign direct investment (foreign factories) is taxable by your country through the Rich Tax.Ĥ. An investment boom in Australia in the 1880s saw increased economic expansion although the investments were providing less of a return. The more foreign direct investment one country has, the faster it researches its techs through bonuses.ģ. The lower the Rich Tax and average wage (social reform) one country has, the more foreign capitalist POPs will go there and invest.Ģ. Allow one country's capitalist POPs to build factories in other country. I immediately thought the economics engine in Vicky2 is robust and reasonable enough to partially simulate this phenomenon, with just a few additional features.ġ. I read in the news today (Yahoo US) that China has replaced Japan as the world's second largest economy, thanked to all the foreign direct investments it got in the past two decades.
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