International Economics

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Each question sould be 250 word answeres and question two has the table 12.4 attached.

 

1. Compare and contrast economic development strategies based on import substitutions versus export promotion.

 

 

2. Table 12.4 provides U.S. International Transactions for 2006.  The accounts are in balance in total even though there is a substantial deficit in the current account.  What does a deficit in the current account represent?  What accounts offset the deficit in the current account to bring the accounts into balance in total?  What do these accounts represent?  How does your explanation help you to interpret Figure 12.4?

 

 

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