What given facts imply about chinas current account balances

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1. China's overall saving rate is now nearly 50% of GDP, the highest in the world. China's domestic investment rate, at 43%, is also high, but not as high as its saving rate. What do these facts imply about China's current-account balance?

2. According to popular opinion, U.S. trade deficits indicate any or all of the following: a lack of U.S. competitiveness owing to low productivity or low-quality products and/or lower wages, superior technology, and unfair trade practices by foreign countries. Which of those factors is likely to underlie the persistent U.S. trade deficits? Explain.

Reference no: EM131278571

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