Does diagram indicate that world economies were tightly link

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Reference no: EM131530745

Question: The accompanying diagram shows foreign-owned assets in the United States and U.S.-owned assets abroad, both as a percentage of foreign GDP. As you can see from the diagram, both increased around fivefold from 1980 to 2013

1698_World GDP.png

a. As U.S.-owned assets abroad increased as a percentage of foreign GDP, does this mean that the United States, over the period, experienced net capital outflows?

b. Does this diagram indicate that world economies were more tightly linked in 2013 than they were in 1980?

Reference no: EM131530745

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