A country whose National Saving is greater than its Investment will experience a ) Trade deficit (IM > X) O Balanced trade (IM – X) = 0 O Trade surplus (X > IM)
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- Peru is growing relatively quickly and has begun to attract large inflows of foreign direct investment. While Peru relishes the benefit of the inflows, it is concerned about the potential negative effects if the foreign investors pull out their investments quickly. One particular reason for Peru to be concerned is that its banks have taken out large loans denominated in U.S. dollars and European euros from foreign banks. If the foreign direct investment is withdrawn quickly from Peru, what will be the effect on each of these items? A. Peru's money supply - B. Peru's exchange rate with other countries - C. Peru's exports - D. Peru's trade deficit - Answer Bank: No Effect, Increase or DecreaseIf a Canadian corporation sells a product to the United States and uses the proceeds to purchase a product manufactured in United States, then Canadian net exports _____, and net capital outflows _____.if a country's economy records a surplus, how will the X and M components be represented in its national savings and investment identity? (X-M); right side, (X-M); left side (M-X); demand side, (M-X); supply side
- The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce South Africa's trade deficit.Which is one of the most notable trends of foreign direct investment over the last 20 years: -The divestment of natural resource companies from the Middle East. -The movement of investment from emerging markets to other emerging markets Flows of FDI from China Southeast Asia. -The flow of FDI from emerging markets to developed nation markets. -b" and "d"When exports and imports are exactly equal for a country, this is called... Net imports. Trade surplus. ⒸNet exports. Trade deficit. Balanced trade.
- Increase in foreign income will _______ net export but depreciation of domestic currency will ________ net export. Increase: Decrease Increase: Increase Decrease: Increase Decrease: DecreaseIfthe value of a nation's imports exceeds the value of its exports,which of the following is NOT true? a.Net exports are negative. b.GDP is less than the sum of consumption, investment, and government purchases. c.Domestic investment is greater than national saving. d.The nation is experiencing a net outflow of capitaGoods imports 635 Goods exports 419 Services imports 144 Services exports 215 Net unilateral transfers -35 Investment income received 278 Investment income paid 225 Capital account -3 Net US acquisition of financial assets 84 Net US incurrence of of liabilities 158 Net change in financial derivatives -21 Statistical discrepancy Based on the table above, this country is currently running a Group of answer choices positive trade balance negative balance of services negative trade balance positive balance of goods
- Turkey has run a trade deficit for almost every year during the past few decades. Which of the following is the main factor leading to this situation? a.The Turkish lira is overvalued against foreign currencies. b.International demand for Turkish goods and services is low. c.Domestic demand for foreign goods and services is high. d.National saving in Turkey is low relative to domestic investment.If a country has a trade deficit of $30 billion, which of the following can be true? Group of answer choices The country's exports are $150 billion and its imports are $120 billion. The country's exports are $110 billion and its imports are $140 billion. The country's exports are $140 billion and its imports are $40 billion. The country's exports are $120 billion and its imports are $140 billion.INTERNATIONAL TRADE Which of the following are direct foreign investments? Explain your answer. i. An American company buys another American company; stockholders in the bought-US company sell their shares on FOREX. ii. A Turkish company builds a factory in Ethiopia and manages the factory as a contractor to the Turkish government.