ECO 1102 Lecture Notes - Lecture 11: Exchange Rate, Foreign Portfolio Investment, Capital Outflow
roza220x and 38789 others unlocked
46
ECO 1102 Full Course Notes
Verified Note
46 documents
Document Summary
Eco1102 - lecture 11 - open-economy macroeconomics: basic concepts. A closed economy does not interact with other economies in the world. An open economy interacts freely with other economies around the world. It buys and sells goods and services in world product markets / capital assets in world financial markets. Exports are domestically produced goods and services sold abroad. Imports are foreign-produced goods and services bought domestically. Net exports (nx) are the value of a nation"s exports minus its imports. Nx measures a country"s trade in goods and services. Trade deficit: an excess of imports over exports. Trade surplus: an excess of exports over imports. Tastes of consumers for domestic and foreign goods. Prices of goods at home and abroad. The exchange rates at which people can use domestic currency to buy foreign currencies. Incomes of consumer at home and abroad. Cost of transporting goods from country to country.