Question:1,Considering a $25,000 midsized sedan built and shipped in Mexico compared to a similar vehicle built in the US, what are the components that give Mexico an advantage over the US according to the article “Cost advantage of building cars in Mexico”?
2, The US trade deficit was about $500 billion in 2016 and the US fiscal deficit was about $500 billion in 2016. The US relies on borrowing to meet these needs. Foreign investment in US Treasuries has been decreasing and the largest foreign investors in US debt have been reducing their holdings recently, but for different reason. If you look at China, Japan, and Saudi Arabia, what are the likely reasons (according to the article “Foreign Investment into US Bonds”) for the decrease in holdings of US debt?
Please answer the two questions above with details!