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Part 2: Short answer questions 1. Both the flow and stock of FDIhave increased over...

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Economics

Part 2: Short answer questions 1. Both the flow and stock of FDIhave increased over the last 35 years.Try to explain why FDIoccurred instead of exporting and the driving force behind Thegrowth of FDI. FDI Outflows 1982-2012 (\$ billions) 2.A country'sbalance-of-payments accounts keep track of the payments to andreceipts from other countries for a particular time period. Thereare three main accounts:The current account records transactions ofgoods, services, and income, receipts and payments; The capitalaccount records one time changes in the stock of assets; Thefinancial account records transactions that involve the purchase orsale of assets. In recent years, the U.S. current account has showna persistent deficit trend. Does current account deficit in theUnited States matter?

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