Oh dear, thats bollocks
Not true at all. Real investors balance their portfolios by risk - they have low risk, medium risk, and high risk ventures.
If that were true, I would've never had a single client when I was a commodity broker - one of the riskiest investments around.
Again, will you show me rich countries that have their economies based on "foreign investors" ?
Panama, Cayman Island, and all the tax haven countries' economies and new office construction is based on money laundering and local banking secrecy laws. These countries' citizens live pretty darn well. Although I guess those would classify as 'banana republics.' I remember in the late 90's I went on vacation to the Cayman Island and I was shocked when I heard the minimum wage was like $12 hour or something - 3x higher than the US at the time. Some other places live off foreign money too like where it's an enormous chunk of their economy like Trinidad, U.A.E, Hong Kong, Macau, Andorra, Lichtenstein, etc. Like Trinidad has over 100 billion of FDI stock yet the most recent annual GDP is around $30 bil. By comparison, Poland has around 140 billion of foreign stock but their most recent GDP figure was $1 trillion - so not a big percent of the economy when you consider the way some other countries are leveraged. I believe the US is actually the country with the most foreign investment - if we're going by total dollar amount.
Also, Poland is a very stable country to invest in - companies spend millions investing in far less stable environments.
China, Russia and others who are interested. This is isn`t good.
At least we have just signed a trade deal with Kazakhstan now - a country I am considering working in due to the high wages for expats and low taxes