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Trade Policy and Corporate Business Decisions$
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Tamir Agmon and Christine R. Hekman

Print publication date: 1990

Print ISBN-13: 9780195055382

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195055382.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use.date: 06 July 2022

Consequences of Balanced Trade between the United States and its Pacific Rim Trading Partners 1

Consequences of Balanced Trade between the United States and its Pacific Rim Trading Partners 1

Chapter:
(p.11) 2 Consequences of Balanced Trade between the United States and its Pacific Rim Trading Partners1
Source:
Trade Policy and Corporate Business Decisions
Author(s):

Richard L. Drobnick

Selwyn Enzer

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195055382.003.0002

This chapter demonstrates how policy goals at the aggregate macro policy level are translated to trade flows (exports and imports) and at the analytical level. The different patterns of trade policy—which will bring balanced trade with the Pacific Rim—will also create international trade risk. The key question in international economics today is how the United States and the world will adjust to the inevitable reversal of America's mammoth trade deficit. That is how the “overconsuming” United States and its “underconsuming” trade partners will rapidly transform their economies so as to convert America's recent trade.

Keywords:   Pacific Rim, trade deficit, overconsumption, underconsumption

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