Chapter 20, Problem 3AA

To determine

To Fill: The correct term in the given blank

Answer to Problem 3AA

Identical

Explanation of Solution

As there is a hike increase in the foreign investment in the U.S. economy, it helps the inverter to invest more and establish and diversify their businesses more in the U.S. as they get higher returns, more value towards their products and it mutually increases the export and import system rapidly.

Thus foreign companies earn identical profits as the U.S. local companies, and thus it opens the opportunity for new jobs and increases employment rates, and thus increases the gross domestic products.