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Imagine a two country world with cross border trade and investment with each other. Country A has a trade surplus and Country B has a

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Imagine a two country world with cross border trade and investment with each other. Country A has a trade surplus and Country B has a trade deficit. Country A has an investment deficit and Country Bhas an investment surplus. 1) What is the long term implication of this trade imbalance? 2) What is the long term implication of this investment imbalance 3) How would this affect the unemployment rate and wage scale in these two countries? 4) If the trade imbalance offset the investment imbalance how would the two currencies be impacted? 5) What will be the likely relative strength of these two countries over a period of time

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