Please Describe and Then Discuss the Major Trends That Have

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The Answer is Merchandise trade balance
Investments in overseas assets by U.S. residents
Investments in U.S. assets by foreign residents
Prior to the 1970s, the U.S. had a positive merchandise trade balance (exports>imports) due to substantial demand for U.S. agricultural products and machinery and equipment overseas. During the next two decades, due to inflation, oil imports and uncertainty over the value of the dollar, the U.S. experienced large merchandise trade deficits. With slowing inflation and a declining value of the dollar during
the early 1990s, U.S. exports of capital goods increased substantially. The result has generally been a declining trade deficit. However, U.S. trade deficits soon grew again and much more steeply than ever, right till the end of the century. By 2000, the U.S. merchandise trade balance deficit approached $400 billion on an annualized basis. These deficits appear to be caused by the size and leadership of the U.S., which has made the US$ the most sought-after currency in the world and the long-term strength of the U.S. economy, which has raised its demand for foreign goods & services.
Investment by U.S. residents abroad grew faster than foreign investments inside the U.S. during the early 1990s due to higher yields on stocks and bonds abroad and a domestic recession that made U.S. investments less attractive. Given that, over the past two decades, capital inflows into the U.S. have grown faster than U.S. investment abroad. Major factors boosting foreign investment in the U.S. include the desire to avoid American import restrictions and the political stability of the U.S. In 2000, U.S. citizens and private organizations invested more than $300 billion overseas, while foreign individuals and private institutions invested more than $750 billion in U.S. assets. The result was a net private financial inflow into the U.S. U.S. banks, hotels, energy companies and numerous other firms have all been acquisition targets for foreign investors.

Please Describe and Then Discuss the Major Trends That Have

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Please Describe and Then Discuss the Major Trends That Have

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