ECON 1000 Chapter Notes - Chapter 12: Canadian Dollar, Beer In Canada, Exchange Rate
Document Summary
Macroeconomics chapter 12 open-economy macroeconomics: basic concepts: trade allows people 2 produce what they produce best & 2 consume the great variety of g&s produced around the world. The international flows of goods and capital: an open economy interacts w/ other economies by, buying & selling g&s in world product markets, buying & selling capital assets such as stocks & bonds in world financial markets. The flow of goods: exports, imports, and net exports: net exports are also called trade balance. If net exports are positive, exports > imports country sells more g&s abroad than it buys from other countries the country runs a trade surplus. If net exports are negative, exports < imports country sells fewer g&s abroad than it buys from other countries the country runs a trade deficit. If net exports are zero, exports = imports country has balanced trade.