6. Please answer the below questions regarding current account: What are the four components of the current account? What do the components Primary Income and Secondary Income capture? Which component is the main driver of the deficit for the U.S.?

7. What is the definition of Foreign Direct Investment?

8. Identify the forms of FDI (backward-vertical FDI, forward-vertical FDI and horizontal FDI) for the below examples: John Deere U.S. (which manufactures/assembles tractors in the U.S.) sets up a wholly owned factory in India and begins manufacturing/assembling tractors in India. John Deere U.S. invests with a local partner (50% each) to build a dealership network in Thailand from scratch. c. John Deere U.S. buys a 10% stake in a German engine manufacturer to source engine components for its U.S. production process.