The concentration of wealth in an economy contributes to trade imbalances. Support this statement by making logical connections between the two phenomena.

Answers will vary. The theory of underconsumption says trade imbalances result when local demand doesn't meet the amount produced in the economy. This lack of demand is attributed to increasing income disparity and concentration of wealth.
Essentially, as rich people get richer, they buy less common, more expensive goods, rather than purchasing a larger quantity of common goods. At the same time, the poor are getting poorer and buying fewer common goods. The leftover goods are then sold internationally. Meanwhile, the wealthy typically use their increased income to make investments in foreign economies-investments that represent capital flowing out of the domestic economy.
The section "Why Trade Imbalances Exist and Persist" on page 120 discusses how the theory of underconsumption. Students can use this section to make their own interpretation and answer this question.