Why Are US

question 17

Essay

Why are U.S. corporations shifting more and more of their total assets outside the United States? What are the consequences of the shift in production to other countries?

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a given time period.

Real Wealth

The value of an individual's or entity's assets, taking into account the effects of inflation on purchasing power.

Liquidity Preference

The desire to hold cash or easily convertible assets rather than investments that might be harder to convert into cash.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.