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It's business models, stupid!

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  • Diermeier, Matthias
  • Hüther, Michael
  • Jung, Markos

Abstract

In contrast to a massive current account deficit against China, the US runs a current account surplus with respect to the European Union. The US-EU surplus is largely driven by a positive service balance and primary incomes originating from US investments abroad. Services and primary incomes overcompensate the US goods trade deficit with the EU. Rather than representing a 'rip-off', the different balances reflect the economies' different business models.

Suggested Citation

  • Diermeier, Matthias & Hüther, Michael & Jung, Markos, 2018. "It's business models, stupid!," IW-Kurzberichte 33/2018, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    • Handle: RePEc:zbw:iwkkur:332018
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    Cited by:

    1. Zhou, Yuekuan & Cao, Sunliang & Hensen, Jan L.M., 2021. "An energy paradigm transition framework from negative towards positive district energy sharing networks—Battery cycling aging, advanced battery management strategies, flexible vehicles-to-buildings in," Applied Energy, Elsevier, vol. 288(C).
    2. Zhou, Yuekuan, 2022. "Energy sharing and trading on a novel spatiotemporal energy network in Guangdong-Hong Kong-Macao Greater Bay Area," Applied Energy, Elsevier, vol. 318(C).
    3. Tiwary, Nishant Kumar & Kumar, Rishi Kant & Sarraf, Shagun & Kumar, Prashant & Rana, Nripendra P., 2021. "Impact assessment of social media usage in B2B marketing: A review of the literature and a way forward," Journal of Business Research, Elsevier, vol. 131(C), pages 121-139.

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