It depends on more than just that. Mindshare, network effects, and the state of a technological art all matter.
The moat crossing isn't in competing with the likes of Google or Paypal directly. The moat crossing is in accumulating enough capital to build the thing that leapfrogs them. Being a middleman allows you to accumulate a lot of money while expending fairly little of it. Then, you focus on the next thing, be it AI or whatever, while collecting middleman fees.
This has a collective effect on a nation's economy. You could tell the American companies to go kick rocks and develop your own local alternatives, but then you're expending your capital on developing a local alternative, not developing the Next Big Thing (TM), and the Americans are. The risk is that your economy becomes less competitive overall while becoming more competitive with one segment of the American economy.
The moat crossing isn't in competing with the likes of Google or Paypal directly. The moat crossing is in accumulating enough capital to build the thing that leapfrogs them. Being a middleman allows you to accumulate a lot of money while expending fairly little of it. Then, you focus on the next thing, be it AI or whatever, while collecting middleman fees.
This has a collective effect on a nation's economy. You could tell the American companies to go kick rocks and develop your own local alternatives, but then you're expending your capital on developing a local alternative, not developing the Next Big Thing (TM), and the Americans are. The risk is that your economy becomes less competitive overall while becoming more competitive with one segment of the American economy.