It has been found that  U.S.-controlled companies, on the average, earned higher returns on their assets as compared to their foreign-controlled counterparts. A number of American politicians have used these figures to argue that there is widespread tax cheating by foreign-owned multinationals.
a. What are some economically plausible reasons (other than tax evasion) that would explain the low rates of return earned by foreign-owned companies in the U.S.? Consider the consequences of the debt-financed U.S. investments made by  foreign companies as well as the depreciation of the U.S. dollar.

b. Could the differences in returns be attributed to the risks faced by U.S.-controlled companies outside of the U.S. and the foreign-controlled companies operating in the U.S.? Explain.