How Tax Reform Will Impact the Trade Deficit

The video discusses the US trade deficit, highlighting changes in its nominal value due to new profit booking systems. It explains how US companies manage overseas earnings to avoid taxes, affecting GDP and productivity. The new tax regime makes US investment more attractive, leading to increased productivity, wages, and exports.

What are the potential outcomes of increased capital investment in the U.S. as mentioned in the text?

In what way does the territorial tax system benefit U.S. companies?