Question

How are trade deficits related to foreign capital inflows and investment in the united states? gov 312l

Answer 1

As foreign capital inflows offset by the trade deficit shift into the national debt, it frees up capital for private investment and increases U.S. productivity.

This is how trade deficits related to foreign capital inflows and investment in the united states.

Trade includes the transfer of goods or services from one person or organization to another person or organization. Often the goal is money. Economists call the system or network that enables trade a market.

Trade is defined as the general marketplace for buying and selling goods, a way of making a living, or the act of bartering or buying or selling something. An example of a trade is the tea trade where the United States buys tea imported from China.

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