What do you mean by Financial Linkages in U.S.

Question

What do you mean by Financial Linkages in U.S. and World Trade?

Answer 1

International trade implies complex financial linkages among nations. Trade deficits must be financed by borrowing or earning foreign exchange, which is accomplished by selling U.S. assets through foreign investment in the U.S.  The U.S. borrows from citizens of other nations; the U.S. is the world’s largest debtor nation.