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A country is approaching the time of the presidential election. The presidential candidates debate on how to address two problems: A substantial large deficit, and

A country is approaching the time of the presidential election. The presidential candidates debate on how to address two problems: A substantial large deficit, and the tendency of foreigners to buy domestic assets in great amount. Both phenomena preoccupy the majority of the population. In particular some are worried that the country is loosing its sovereignty as foreigners own companies and buildings located in the country. Others feel that because of the big inflow of foreign goods, local producers and manufacturers suffer. Each presidential candidate is trying to understand how to position its campaign. Whether to propose a plan to address the issue of trade or that of financial flow. Suppose you are hired by a presidential candidate to give an advice about a long term plan. What corrective measures would you suggest? For each measure be specific about how it could help.

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