To illustrate, assume that the United States is located along schedule CFA0 at point A. Suppose that rising U.S. income leads to higher sales and increased profits. Direct investment (in an auto-assembly plant, for example) becomes more profitable in the United States. Nations such as Japan will invest more in their U.S. subsidiaries, whereas General Motors will invest less overseas. The higher profitability of direct investment leads to a greater flow of funds into the United States at each possible interest-rate differential and an upward shift in the schedule to CFA1.