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QUESTION

A country has overseas assets worth 12% of GDP. Overseas assets earn a return of 7%, which is distributed back to the home country.

A country has overseas assets worth 12% of GDP. Overseas assets earn a return of 7%,

which is distributed back to the home country. Other countries own assets in the domestic

economy worth 8% of GDP and these assets earn a return of 11%. What is the difference

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