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Social Studies, 05.07.2019 00:00 sarahelisabeth444

Assume a u. s. firm buys (imports) $5 million (in u. s. dollars) of foreign goods. that transaction by itself increases the trade deficit by $5 million. but, the $5 million will flow back to the united states to purchase either (i) u. s. goods and services or (ii) u. s. assets. • how does the way the $5 million comes back to the united states determine whether there will be balanced trade or a trade deficit? • how does the u. s. economy benefit from either transaction (the foreign purchase of u. s. goods and services [exports] or the purchase of u. s. assets)?

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Assume a u. s. firm buys (imports) $5 million (in u. s. dollars) of foreign goods. that transaction...
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