--%>

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

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

E

Expert

Verified

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.

   Related Questions in Business Economics

  • Q : Economics chapter 1 Suppose that on the

    Suppose that on the basis of a nation's production curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. Relate this information to the following statement: "Thr

  • Q : Major players in international trade

    Who are the major players in international trade today?  Besides Japan, what other Asian nations play significant roles in international trade?

  • Q : Illustrate other than price many factors

    Illustrate other than price many factors determine the outcome?

  • Q : Elucidate state expenditures and

    Elucidate state expenditures and receipts for all states in 1998?

  • Q : Increase in spending for space research

    Use the circular flow model to confirm this assertion for $50 million increase in spending for space research?

  • Q : Real rate of interest Question: Hubbard

    Question: Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  • Q : What are the limitations of Circular

    What are the limitations of Circular Flow Model?

  • Q : What is the opportunity cost of your

    Suppose you arrive at a store expecting to pay $100 for an item, but learn that a store two miles away is charging $50 for it.  Would you drive there and buy it?  How does your decision benefit you?  What is the opportunity cost of your decision?  Now suppose you arrive at a s

  • Q : Historical process by Adam Smith of

    Writings on the historical process by Adam Smith of economic development do not comprise heavy reliance upon: (1) the development of property rights. (2) self interest. (3) divisions of labor in production processes. (4) innovations d

  • Q : Introduction of the term capital

    Give brief introduction of the term capital structure? And also write down its principles?