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Significance
Alternative explanations focus on chroncially weak investment and the relocation of production from developed to developing markets. The diagnosis matters because these imbalances are the source of significant tension and dissatisfaction within and between states.
Impacts
The Pettis-Klein analysis provides intellectual support for the United States's effort to overhaul its trade and financial ties with China.
It would take a major crisis in the United States, EU or China to provide the political impetus necessary to reduce global imbalances.
A lack of trust and the weakness of the UN and other international bodies will limit collaborative solutions to the imbalances.
Keywords:
International,
INT,
economy,
aid,
consumer,
foreign investment,
foreign trade,
growth,
investment,
talks,
welfare
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2020
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