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This is a problem that needs to be addressed or the country as a whole, in terms of business and citizens, would suffer immensely.
The trend of international investment position of the United States is problematic because the merchandise trade deficit can mainly be "accounted for by trade with China, Japan, Canada, Mexico, and Germany" (Nanto & Lum, 2006). The following chart is a representation of the total United States trade in terms of contributors.CountryCanadaMexicoChinaJapanPercentage Contribution to United States Trade 20%12%10%8%
(Nanto & Lum, 2006).
"The current-account balance summarizes a country's current transactions with the rest of the world, which include trade, income from international investments, and transfers" (Congressional Budget Office, 2004)...
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