Gernot writes: > Could it not be the case that territorial, so-called sovereign, states and their foreign trade balances have become unimportant in a globalized world economy? (Thurow: a global economy has replaced national economies. Leftist literature on the demise of the sovereign nation-state.) Who knows whether the state of California has a c/a surplus or deficit with the rest of the U.S.? Most people don't know and don't think that is important. <
Here in California, we use the same currency as in the rest of the country. Thus, a c/a deficit or surplus doesn't threaten to change our terms of trade. Jim Devine
