Why Does Continued Foreign Investment in U

question 175

Essay

Why does continued foreign investment in U.S.stocks and bonds and foreign companies continuing to build factories in the United States result in a current account deficit in the United States?

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Definitions:

Transfer Price

The cost applied to goods or services exchanged between units or branches of the same organization.

Antennae Division

A specialized unit or department within an organization focused on telecommunications or related technological functions, involving the use of antenna systems.

Outside Supplier

A third-party company that provides goods or services to another company as part of the purchasing company's supply chain.

Variable Expenses

Financial outlays that fluctuate based on the rate of business or manufacturing activities.