Trade imbalances can be offset by foreign capital investment.

Name: Trade imbalances can be offset by foreign capital investment.
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Question

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When a country has a trade imbalance, meaning it is importing more than it is exporting, foreign capital investment can help to offset the imbalance by providing funds for investment in the country's economy. This can lead to increased exports and a reduction in the trade deficit.

Trade Imbalances Can Be Offset by Foreign Capital Investment