Can someone explain how a small country like the Netherlands has a stock of Foreign Direct Investment abroad that is 5,809,000,000,000, and ranked second in the world after the European Union? And what does this mean, is this the total value of assets by Dutch companies abroad? I’m fascinated!
In: Economics
It’s because of multinationals playing tax games, apparently.
[https://www.taxjustice.net/2014/11/10/netherlands-worlds-largest-source-fdi/](https://www.taxjustice.net/2014/11/10/netherlands-worlds-largest-source-fdi/)
> Not surprisingly, the huge FDI from the Netherlands also has a lot to do with tax planning. Most of it consists of investments abroad that foreign multinationals own via Dutch holdings. Only a fifth consists of real Dutch investments.
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