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As the theory goes, no longer able to avoid tax anywhere, U.S. corporate giants would feel liberated to invest those foreign gains on home soil.
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The significant increases in EBITDA and profit before taxation were driven by substantial foreign exchange gains on the year-end valuation of hedged positions (£15.6 million).
The company said foreign exchange gains also bolstered its results.
As domestic Chinese firms' ability to imitate foreign technology gains strength and competition between foreign firms intensifies in the Chinese market, such competitive threat creates an urgency for protecting intellectual property.
One study found that it cost Colombian chemical factories over $1m to enter a foreign market.The gains from trade also differ in Mr Melitz's model.
The State Department was one of nine agencies comprising CFIUS, which vets potential national security impacts of transactions where a foreign government gains control of a U.S. company.
Excluding foreign currency gains, sales increased 8.0% and same-store sales rose 3.0%.
For some investments, there are specific taxes imposed on foreign investors' gains and distributions.
The company lowered its full-year guidance, excluding foreign currency gains and losses, of $4.13 per share.
The Brazilian real declined 17.0% against the U.S. dollar in the third quarter, resulting in a $471.0 million loss compared with foreign currency gains of $56.0 million, a year ago.
The group said it now expects to make just £4.7m in profit this year, including a one-off foreign exchange gain of £700,000.
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