For industry to settle in a country, you first need electricity; for electricity, you need some trained workers; for trained workers, you need some schools; for schools you need some money; for money, you need some industry.
As it happens, I have personally been something of an enthusiast for the London Olympic games, mainly on the grounds a) that a bit of wasteland will be made nice and b) that it tends to make everybody happy that their country should be the centre of world attention for a couple of weeks in their life.
Most people hugely underestimate the amount of 'empty space' we have in our country. Fly over the U.K., and you see that human settlement does not fill up the U.K. at all. It accounts for something of the order of 15 per cent of the landmass.
When a population saves a lot, the funds are invested outside the country as well as inside. If the Japanese invest in the United States, it pushes their exchange rate down and makes their manufacturing more competitive.
