Illustrate major economic flows that link U.S. with nations

Question

Illustrate major economic flows that link U.S. with nations.  Provide an example to illustrate each flow.  Explain the relationship between the top and bottom flows.

Answer 1

The 4 major economic flows are:

1. The flows of goods and services

2. The flows of capital equipment and labor

3. The flows of information and technology

4. The flows of money.

The financial flows provide the money necessary to pay for exports and imports.