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Understanding the Global Imbalance from the Perspective of Outsourcing Activities to China

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“Global Imbalance” is one of the most frequently highlighted keywords that people discuss the current financial crisis and China is certainly mentioned as the “Source” of it. Considering that a majority of the trade surplus are from the products made by branches of multinational companies, China seems have enough argument against this blame. This paper is going to interpret the phenomenon through the input-output analysis of these outsourcing activities. The basic nature of international division of labor will help us to understanding the imbalance more deeply.

This talk is part of the Cambridge Finance Workshop Series series.

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