Answer:
1. False
Proceeds from foreign investment will actually benefit the domestic capital stock. The Foreign investment has both the macro and micro effects. On macro levels it's beneficial for sectors like exports, imports, investment etc. On micro level it enhances quality of labor force.
Therefore, it was better for USA because foreign investment brought with it increased capital and new business opportunities.
2. False
Returns from an investment goes to the investor itself.In this case these returns went to Japan and China for its investment in US. It would have been better if Americans themselves made the investment because then the returns wouldn't go to a foreign nation.