oreign countries start to subsidize investment by instituting an investment tax credit. a) What happens to world investment demand as a function of the world interest rate? b) What happens to the world interest rate? c) What happens to investment in

Read the news article “The China Syndrome” and discuss on the following questions:http://www.huffingtonpost.com/scott-paul/the-china-syndrome_b_1472301.htmlWhat has been the impact of granting China permanent trade status? Who has benefitted?How much has US dependency on lower priced goods from China, hurt overall job growth?Since it is considered that at some point China will drive the global economy, it is a soundagreement that reducing the trade barrier will affect the Chinese economy, causing a ripple effectfor global economy? Do you agree or disagree? Explain.

From time to time, a government official will argue that a country should strive for both a trade surplus and a healthy inflow of capital from abroad. Is this possible?

Explain how exchange rates may impact the performance of international equity investment.

Which scenario best demonstrates foreign direct investment? Salia started a Polish restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Poland.   Super Blooms, a reputable vegetable plant company in Holland, exports tomato, pepper, and potato garden plants across the globe.     Ups n Downs Inc., a Chinese firm, supplies roller coaster components in the United States.   Domesticity, a U.S.-based office furniture company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.   Lux Linens, a fabric conglomerate in the United States, imports raw silk from China and Italy.

In the previous problem, do we have a trade surplus or trade deficit?

https://www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services Here’s the link for the data ^

Q3

What is a trade deficit? How is a trade deficit related to the net inflow of foreign capital? Is a trade deficit bad? Why or why not?

Discuss NAFTA as it pertains to services and investment. Has it increased trade among the member countries?