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As exemplified in the 1990s, the inflow of was supporting a surge of by U
As exemplified in the 1990s, the inflow of was supporting a surge of by U.S. firms.
(a) foreign financial investment, savings
(b) foreign financial investment, physical capital investment
(c) cheap labor, capitalization
(d) cheap labor, physical capital investment
Expert Solution
Option (b) foreign financial investment, physical capital investment
This phenomenon occurred during the latter period of the 1990s when the major issues faced by the government with regard to their budget deficit was transformed as surplus was achieved. The inflow at this time was utilized. However, there was no change in the trends seen in the trade deficit.
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