ECON 1100 Chapter Notes - Chapter 14: Demand Curve, Foreign Portfolio Investment, The Foreign Exchange

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raspberryswan787

23 Apr 2016

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Open economy - an economy that has interactions in trade or finance with other countries. Closed economy - an economy that has no interactions in trade or finance with other countries. Balance of payments - the record of a country"s trade with other countries in goods, services, and assets. Current account - the part of the balance of payments that records a country"s net exports, net income on investments, and net transfers. Records current or short-term flows of funds into and out of a country. The balance of trade - the difference between the value of the goods a country exports and the value of goods a country imports. Net exports = balance of trade + balance of services. The financial account - the part of the balance of payments that records purchases of assets a country has made abroad and foreign purchases of assets in the country.

Related Questions

Balance of payments: Using the following data for a given year, calculate

Item	Value
The rise in the country's private financial assets abroad	623
Imports of merchandise	782
Investment income, net	-27
Transfers, net	-15
Export of services	504
Rise in foreign private financial assets in the country	580
Exports of merchandise	903
Rise in foreign governments financial assets in the country	224
Imports of services	735
Rise in-country government s financial assets abroad	29

(a) The current account balance.

(b) The financial account balance.

viridianmosquito185

QUESTION 7

Suppose there are only two countries in the world, Country A and Country B. The following table contains information on each country's demand and supply of some good.

	Country A	Country B
Demand	Q = 107 - 2P	Q = 167 - 1P
Supply	Q = 1P - 28	Q = 3P - 17

If there is free trade between these two countries, what would be the quantity of Net Exports in Country A?

Round your answer to two decimal places. Remember, Net Exports is Exports - Imports. If your answer is negative, be sure to include the negative sign.

QUESTION 8

Suppose there are only two countries in the world, Country A and Country B. The following table contains information on each country's demand and supply of some good.

	Country A	Country B
Demand	Q = 187 - 1P	Q = 137 - 3P
Supply	Q = 3P - 14	Q = 3P - 26

If there is free trade between these two countries, and this is the only good in which these two nations trade, what would be the value of Country B's Trade Balance?

skycricket398

The following table lists balance of payment current accounts for Country A.

Current Accounts
1.	Exports of goods, services, and income		$169,928
2.	Goods, adjusted, excluding military	$94,068
3.	Services	46,889
4.	Income receipts on U.S. assets abroad	31,921
5.	Imports of goods, services, and income		151,536
6.	Goods, adjusted, excluding military	84,707
7.	Services	32,289
8.	Income payments on foreign assets in the United States	35,740
9.	Unilateral transfers, net		9,481
A. What is Country A's total current accounts? _________$ Total current accounts B. What is Country A's balance on goods? _________$ Balance on goods C. What is Country A's balance on services? __________$ Balance on services D. What is Country A's balance on investment income? (Negative amount should be indicated by a minus sign.) __________$ Balance on investment income

ambercicada67

ECON 1100 Chapter Notes - Chapter 14: Demand Curve, Foreign Portfolio Investment, The Foreign Exchange

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