Daly actually does explain further what he means by that in footnote 7 of his paper:
Capitalists are interested in maximizing absolute profits and therefore seek to minimize absolute costs. If capital is mobile between nations, it will move to the nation with lowest absolute costs. Only if capital is internationally immobile will capitalists bother to ...
Here are some recent books:
Taming Capital Flows: Capital Account Management in an Era of Globalization (2015)
Capital Flows and Exchange Rate Management (2013)
Managing Capital Flows: The Search for a Framework (2010)
Capital rising: how capital flows are changing business systems all over the world (2010)
The term FDI is generally reserved for foreign capital investment in domestic assets of the host country for business interests as opposed to hot flows which are generally aimed for quick capital gains.
Examples of FDI would include take-overs of firms, collaboration/merger with a domestic company, entry into a new market, etc. Such investment give returns ...
Daly gets a lot wrong, including (in my view) the idea that capitalists pursue absolute profits in an economy that rests on fiat currencies and foreign exchange markets. Indeed, the very notion of opportunity cost implies that it is relative, not absolute, costs that matter most to the rational agent. Does the capitalist seek the lowest absolute cost, or ...
This is a massive area of research, revived recently under the title of "capital misallocation".
Some reason why capital do not fully adjust:
grow in intangible capital-intensive sectors (which require more internal financing than other sectors) + low interest rates.
quadratic adjustment costs on investment.
financial frictions lowers access to credit to ...