ECON 1BB3 Lecture Notes - Capital Outflow, Real Interest Rate, Automotive Products
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21 Mar 2013
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ECON 1BB3 Full Course Notes
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Economics 1bb3 march 5th, 2013: (start of chapter 12) Exports: goods and services that are produced domestically and sold abroad. Imports: goods and services that are produced abroad and sold domestically. Factors affecting the trade balance: tastes (foreign/domestic goods, prices (foreign/domestic goods, exchange rates, income (foreign/domestic goods, transportation costs, government trade policies. Question: which industry is the largest in terms of canadian exports: energy products, industrial goods and materials, machinery and equipment, automotive products, agricultural products. Net capital outflow (nco): the purchase of the foreign assets by domestic residents minus the purchase of domestic assets by foreign residents. Net capital outflow is also called net foreign investment (nfi) Factors affecting net capital outflow include: real interest rate on domestic/foreign assets, economic and political risk of holding assets abroad, government policies affecting foreign ownership of domestic assets. Foreign direct investment: a capital investment that is owned and operated by a foreign entity -> day-to-day control management decisions.
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Related Questions
Q46. An appreciation of the U. S. dollar would a. encourage foreigners to invest in the United States b. discourage foreigners from buying U. S. goods c. discourage the travel abroad of U. S. citizens d. encourage foreign travel in the United States Q47. The financial account of the balance of payments includes the purchase and sale of physical assets but not of financial assets. a. true b. false Q48. Special Drawing Rights are issued by the a. International Monetary Fund b. Bretton Woods Organization c. General Agreement on Tariffs and Trade d. World Bank Q49. The balance of payments includes a. only exports, imports, and service transactions b. the balance on current account, plus all capital transactions and all official transactions and the statistical discrepancy c. only the official transactions d. all goods and services produced in a nation's economy during a given year Q50. A debit item on the U. S. balance of payments is any transaction that a. results in a loss by U. S. sellers b. results in a loss by U. S. buyers c. makes foreigners use up their holdings of U. S. dollars d. makes U. S. dollars available to foreigners |