ECON 112 Lecture Notes - Lecture 18: Foreign Portfolio Investment, Capital Outflow, Open Economy
Document Summary
Friday, november 20, 2015. Economy that does not interact with other economies in the world. Economy that interacts freely with other economies around the world. It buys and sells goods and services in world product markets. It buys and sells capital assets such as stocks and bonds in world financial markets. Iii. i. i. i. ii. i. i. i. i. i. a. b. a. b. c. d. e. f. g. Goods and services that are produced domestically and sold abroad. Goods and services that are produced abroad and sold domestically. Value of a nation"s exports minus the value of its imports. Trade surplus (positive net exports) Exports are greater than imports. Trade deficit (negative net exports) The country sells more goods and services abroad than it buys from other countries. Imports are greater than exports. The country sells fewer goods and services abroad than it buys from other countries.