Question

1. Exports, Imports, Net exports. Trade surplus, trade deficit, trade balance. What factors influence a country’s...

1. Exports, Imports, Net exports. Trade surplus, trade deficit, trade balance. What factors influence a country’s exports? Imports? Net exports(NX)?

2. What is a net capital outflow (NCO)? What factors influence net capital outflow? What can you say about NCO and Net exports? What does national saving equal to in open economy? (S=I+NCO)

3. Define Nominal Exchange rate and real exchange rate. What does it mean when a currency appreciates? How do you calculate real exchange rate and what does it mean that real exchange rate rises?

Homework Answers

Answer #1

1 - The exports in the country are influenced by numerous factors. These can be the political conditions in the country , the level of exchange rate with the importing country , the inflation and demand in the country and the level of capital and labor productivity.

The factors which influence the imports of the country are the political factors . The exchange rate between the exporting and importing country , the marketting , the level of protectionism.

The factors such as the income levels of citizens of the country , the trade policies , the exchange rates , relative price levels and the level of technology affect the net export of the economy

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If exports increase and imports decrease in the U.S., what happens to the trade deficit? Will...
If exports increase and imports decrease in the U.S., what happens to the trade deficit? Will this help or hurt the U.S.? In what ways is a bigger trade deficit a problem for the country? What good is the deficit? Hint: Use the currency market supply and demand to determine the exchange rate.
1. Which of the following best describes the effects of an increase in real interest rates...
1. Which of the following best describes the effects of an increase in real interest rates in Canada? a. It discourages both Canadian and foreign residents from buying Canadian assets. b. It encourages both Canadian and foreign residents to buy Canadian assets. c. It encourages Canadian residents to buy Canadian assets, but discourages foreign residents from buying Canadian assets. d. It encourages foreign residents to buy Canadian assets, but discourages Canadian residents from buying Canadian assets. ____     2.   Which of the following...
Saving and net flows of capital and goods In a closed economy, saving and investment must...
Saving and net flows of capital and goods In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in...
Recent trade tensions between the US and China have cooled off and the import quota on...
Recent trade tensions between the US and China have cooled off and the import quota on Chinese goods has been eliminated. Use the Loanable Funds model, net capital outflow (NCO), and the Foreign-Currency Exchange market diagrams to determine how this policy change would affect (in order) • the real interest rate: _________ (decrease/increase/no change) • net capital outflow: __________(decrease/increase/no change) • the real exchange rate: ___________(decrease/increase/no change) • net exports: ___________(decrease/increase/no change)
Use the information in the following table to answer questions 1 through 4: Exports of goods...
Use the information in the following table to answer questions 1 through 4: Exports of goods & services: $1000 Imports of goods & services: $1200 Net change in assets owned abroad: $100 Net change in foreign owned assets at home: $360 Unilateral transfers received: $130 Unilateral transfers paid: $200 Investment income paid to foreigners: $380 Investment income received from foreigners: $400 Balance on the capital account: $0 Statistical Discrepancies: $0 1. The balance on the current account is _________. A)...
Balance of Payments Worksheet Part A: Reason for Money Received Inflow Amount (+) Account Exports of...
Balance of Payments Worksheet Part A: Reason for Money Received Inflow Amount (+) Account Exports of goods and services $1287 Current Income receipts from domestically-owned assets abroad (receive profits, interest etc.) $537 Inward direct investment $112 Capital & Financial (C&F) Foreign (private and government) purchasing of domestic securities (stocks, bonds, etc.) $862 Increase of foreign deposits in domestic financial institutions (banks etc.) $310 Total incoming money flows $3108 Reason for Money Paid or Given Out Outflow Amount (−) Account Imports...
Question 13 1. Suppose that goods in a foreign country seem cheap from a domestic country...
Question 13 1. Suppose that goods in a foreign country seem cheap from a domestic country perspective. This means that, a. the domestic currency is relatively weak and the real exchange rate for the domestic currency is less than 1 b. the domestic currency is relatively weak and the real exchange rate for the domestic currency is greater than 1 c. the domestic currency is relatively strong and the real exchange rate for the domestic currency is less than 1...
Exports are $800 billion, imports are $900 billion. Which of the following are true? there is...
Exports are $800 billion, imports are $900 billion. Which of the following are true? there is a trade surplus. net exports will be a negative number. aggregate demand will rise when the foreign sector is added in. all of the above. Flag this Question Question 21 pts Excise taxes are generally progressive. True False Flag this Question Question 31 pts Net exports is a negative figure whenever a nation's exports of goods and services exceed its imports. a nation's imports...
ECO - 252 - Macroeconomics. 7. True/False statements. Simply state if the statement is true or...
ECO - 252 - Macroeconomics. 7. True/False statements. Simply state if the statement is true or false. No explanation required. a. An increase in U.S. net exports decreases the supply of dollars. b. If net exports are negative, foreign assets bought by Americans are greater than American assets bought by foreigners. c. A decrease in a country's real interest rate reduces net capital outflow. d. If a U.S. resident buys a foreign bond, this action is included in the U.S....
What is the nation’s trade balance on its current account and capital account given the following...
What is the nation’s trade balance on its current account and capital account given the following information? Is the nation experiencing a cash inflow (outflow) on its current account and its capital account? Was there a net currency inflow or outflow? Imports $412 Exports $500 Direct Investments Abroad $68 Foreign Investments in the Country $32 Foreign Purchases of Domestic Securities $66 Purchases of Foreign Securities $174 Net Income from Foreign Investments $142 Government Spending Abroad $66
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT