[boreas]

I think you may be wrong in your interpretation of the present situation. Instead of concluding that, because modern capitalists are happy to invest abroad, Smith was wrong about their preferences, you could conclude that the world is becoming so integrated that the difference between foreign and domestic is less relevant than ever. In other words, the entire world is "domestic".

I think this could be a reasonable conclusion given the increase in the strength of property rights for foreigners ("he intends his own security") and the decrease in transportation costs and time, the two things I assume Smith was reasoning about.