Question

MERCHANDISE TRADE EXPORTED 400 MERCHANDISE TRADE IMPORTED  500 SERVICE TRADE EXPORTED 350 SERVICE TRADE IMPORTED 200 UNILATERAL...

MERCHANDISE TRADE EXPORTED 400

MERCHANDISE TRADE IMPORTED  500

SERVICE TRADE EXPORTED 350

SERVICE TRADE IMPORTED 200

UNILATERAL TRANSFERS LEAVING

COUNTRY 450

UNILATERAL TRANSFERS COMING

INTO THE COUNTRY 550

SHORT TERM CAPITAL LEAVING THE

COUNTRY 450

SHORT TERM CAPITAL COMING INTO

THE COUNTRY  550

LONG TERM CAPITAL LEAVING THE

COUNTRY 500

LONG TERM CAPITAL COMING INTO

THE COUNTRY 350

1. WHAT IS THE MERCHANDISE TRADE BALANCE?

2. WHAT IS THE SERVICE TRADE BALANCE?

3. WHAT IS THE UNILATERAL TRADE BALANCE?

4. WHAT IS THE CURRENT ACCOUNT BALANCE?

5. WHAT IS THE S/T CAPITAL BALANCE?

6. WHAT IS THE L/T CAPITAL BALANCE?

7. WHAT IS THE CAPITAL ACCOUNT BALANCE?

8. WHAT IS THE BOP?

Homework Answers

Answer #1

1. MERCHANDISE TRADE BALANCE = MERCHANDISE TRADE EXPORTED - MERCHANDISE TRADE IMPORTED

MTB= 400 - 500 = -100

2. SERVICE TRADE BALANCE = SERVICE TRADE EXPORTED - SERVICE TRADE IMPORTED

STB = 350 - 200 = 150

3. UNILATERAL TRADE BALANCE = UNILATERAL TRANSFERS COMING INTO THE COUNTRY - UNILATERAL TRANSFERS LEAVING COUNTRY

UTB = 550 - 450 = 100

5. THE S/T CAPITAL BALANCE = SHORT TERM CAPITAL COMING INTO THE COUNTRY -

SHORT TERM CAPITAL LEAVING THE COUNTRY

S/TB = 550 - 450 = 100

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