Q: What policy would help the developing country maintain its fixed exchange rate?
A: Countries often take monetary policy measures to maintain their exchange rate system. A developing…
Q: 3. Find Current Account Balance from the following: Items (i) Export of goods (ii) Export of…
A: Current account is the account which can calculate the value of exports and imports of goods and…
Q: The table below shows the 2021 national account of Westein Republic. Calculate the Gross National…
A: Gross national product is one metric for measuring a nation's economic output. Gross national…
Q: COMPONENT R millions Consumption expenditure (C) 9 000 Investment (1) 6 500 Government spending (G)…
A: 7.2.4. The Gross Domestic Product (GDP) is the summation of the final value of all the final goods…
Q: If a country's savings remain constant and the trade balance (net exports) increases, then: A) GDP…
A: The GDP of a country is given by - Y = C + I + G + NX where C = consumption expenditure I =…
Q: suppose Qd=-33*p+608, Qs=20*P+10 for home and Qd*=-33*p+401, Qs*=20*P+35 for foreign. What is the…
A: Answer in step 2
Q: a Define 'terms of trade'. b What is the formula for the terms of trade index? c From the table…
A: The proportion of nation's export prices to its import prices is known as terms of trade . To…
Q: A Japanese bicycle costs 10,000 Yen. The $/Yen exchange rate is $.01/1 yen. What is the US dollar…
A: The price of a country's money in relation to the money of another country is referred to as the…
Q: Use the following to answer question 4-6. Table 1: Hypothetical National Income and Product Accounts…
A: Since you have posted multiple questions, as per guidelines we can solve only first question
Q: Table 1 Transaction Balance of Payments Transactions (Year 2022) number Amount 1 Interest paid by a…
A: The difference between the value of a nation's net imports and net exports over a particular time…
Q: Based this table, what is the value of the trade balance? a. $100 b. -$100 c. -$55 d. $55
A: Trade balance = Export of goods and services – import of goods and services. = 400 – 500 = -100
Q: The following information on Ghana’s Balance of Payments Accounts for 2013 (million U.S.…
A: Solution: 1. Calculation of Ghana current account: Current Account: It refers to the account that…
Q: The trade of services and goods is recorded in the balance of payments as a a. Invisible trade b.…
A: The trade of goods and services is recorded in the current account of BOP. Trade is recorded as…
Q: Do you consider the Philippines as a "Third World Country"? If yes, why? If no, why not?
A: Compared to the rest of the world, third world countries are characterized by height the level of…
Q: Global outsourcing, is it good? because US business can take an advantage of cheaper foreign labors…
A: Global outsourcing allows companies to find partners in different parts of the world to carry out…
Q: The government of a country is not considered a resident while calculating the balance of payments.…
A: Balance of payment is the records of all monetary transaction occurred between countries .It…
Q: 2 - What is the other name for the difference between export and import? A) Net exports B) Foreign…
A: Exports are the commodities that are sold to the other countries from the home country while imports…
Q: what is the 3 disadvantage of adopting a single currency ?
A: Answer: Adopting a single currency at the world level has advantages as well as disadvantages. The…
Q: United Arab Emirates 14.75 3.6731 Argentina 171 60.0656 Australia 6.45 1.449065353 Azerbaijan 3.95…
A: Answer a ) The formula used for the calculation of implied PPP is : Implied PPP = Price in home…
Q: Calculate the Ghana Current Account. Calculate the Ghana Capital and Financial Account Balance. What…
A: Balance of Payment is the records of all the transactions that are made between the residents of one…
Q: Do you think the US GSP is a big factor to help the Philippines? In what way and explain wh
A: U.S. trade inclination projects like the Generalized System of Preferences (GSP) give freedoms to a…
Q: oreign countries start to subsidize investment by instituting an investment tax credit. a) What…
A: A tax credit is an incentive being offered which in turn allows the taxpayers for reducing the tax…
Q: Calculate trade-to-GDP for both case and define what does the trade-to-GDP ratio measure. Compare…
A: Gross Domestic product (GDP) refers to the value of goods and services produced with in the domestic…
Q: (Use Table 1) What is the services trade balance? Table 1 Imports in services: Exports in goods:…
A: Only transactions linked to the import and export of commodities are included in the service trade…
Q: Suppose balance of trade is $630 and imports of goods is $115 find the exact value of the exports of…
A: Balance of trade is gradually defined as the must value of the exports excluding the part of the…
Q: QUESTION 20Suppose there is a rise in foreign output, Y*. This rise in Y* will cause which of the…
A: The income of the foreign(Y*) will determine the export of the domestic country. There is thus an…
Q: Question 25 (1 pnint) If the catch-up effect is universal, i.e. the poorer countries grow faster.…
A: The gross domestic product shows the value of domestically produced goods and services in a given…
Q: If the exports in a economy are $280139 and the imports are $127448 find the trade balance
A: As per the question, Exports value is = $280139 Imports value as = $127448 Trade balance = ?
Q: o.30] (Multiple Choice) Media had made further globalization. False
A: Globalization is the free movement of people, capital, technology , knowledge and resources…
Q: The following figure shows the Euro-U.S. Dollar exchange rate in the past year, i.e., the price of 1…
A: EUR/USD exchange rate depicts the units of dollar required to get one euro. If EUR/USD is 1.14 Then…
Q: Current Account Balance = (Export Import) + net income from abroad + Net unilateral transfer Current…
A: Answer Explanation Current account +capital account+finanancial account=0 -100+[-10]+financial…
Q: Why do some marginalised groups in the USA and Canada reject the idea of globalisation? In answering…
A: The relationship between policies that promote globalisation, economic growth, inequality, and…
Q: NX-500-500e r=r*=5 Suppose the world interest rate drop from r=5 to 2percent (assume government…
A: The exchange rate at which the demand for a currency and supply of the same currency are equal. The…
Q: Suppose that national saving is $1568 billion, investment is $1835 billion, and private saving is…
A: Answer to the question is as follows:
Q: (Balance of Payments) The following are hypotheticaldata for the U.S. balance of payments. Use the…
A: Merchandise exports 350.0Merchandise imports 2,425.0Service exports 2,145Service imports 170Net…
Q: Based on the Balance of Payments account presented in this table, the net exports are: a. 2300 b.…
A: Net exports = total Exports - total Imports = 1500 + 800 – 2100 – 500 = -300
Q: 1. – Using the following information, determine each one of the theoretical Exchange Rates (E.R.)…
A: The purchasing power parity (PPP) holds when the power of purchase of one unit of currency is…
Q: Suppose the world interest rate drop from r-5 to 2percent (assume government G-750). Find the…
A: The exchange rate at which the demand for a currency and supply of the same currency are equal. The…
Q: a. What is the value of exports? billion %24
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What is ? 1-)Balance Of Payments 2-)Trade Deficit 3-)J-Curve Effect
A: The method used to monitor all the international transactions of a country, in a given period of…
Q: 2.4) Explain why according to the International Fisher Effect (IFE), a higher interest rate would…
A: The Fisher Effect is an economic theory proposed by economist Irving Fisher to explain the…
Q: A can of soda costs $1.25 in the United States and25 pesos in Mexico. What is the peso–dollar…
A: The central bank has a tool of Monetary Policy (MP) through which it regulates the money supply,…
Q: Malaysia main export destinations in 2020 are a. China, Singapore, USA. b. China, Hong Kong SAR and…
A: Malaysia main export destinations in 2020 is shown in table below: Country % Export China 17%…
Based on the Balance of Payments account presented in this table, the
a. 2300
b. -2600
c. -300
d. -200
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The GDP for the United States is 18,036 billion and its current account balance is 484 billion. What percent of GDP is the current account balance?If foreign investors buy more U.S. stocks and bonds, how would that show up in the current account balance?Imagine that the U.S. economy finds itself in the following situation: a government budget deficit of 100 billion, total domestic savings of 1,500 billion, and total domestic physical capital investment of 1,600 billion. According to the national saving and Investment Identity, what will be the current account balance? What will be the current account balance if Investment rises by 50 billion, while the budget deficit and national savings remain the same?
- In 2001, the United Kingdoms economy exported goods worth 192 billion and services worth another 77 billion. It imported goods worth 225 billion and services worth £66 billion. Receipts of income from abroad were 140 billion while income payments going abroad were 131 billion. Government transfers from the United Kingdom to the rest of the world were 23 billion, while various U.K government agencies received payments of 16 billion from the rest of the world. Calculate the U.K. merchandise trade deficit for 2001. Calculate the current account balance for 2001. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.How did large trade deficits hurt the East Asian countries in the mid 1980s? (Recall that trade deficits are equivalent to inflows of financial capital from abroad.)(Balance of Payments) The following are hypotheticaldata for the U.S. balance of payments. Use the data tocalculate each of the following:a. Merchandise trade balanceb. Balance on goods and servicesc. Balance on current accountd. Financial account balancee. Statistical discrepancyBillions of DollarsMerchandise exports 350.0Merchandise imports 2,425.0Service exports 2,145Service imports 170Net income and net transfers 221.5Change in U.S.-owned assets abroad 245.0Change in foreign-owned assets in theUnited States100.0
- 1._______ The total value of a nation’s exports minus thetotal value of its imports over some period of time.2._______ The ability to produce a specific product moreefficiently than any other nation.3._______ Selling and shipping raw materials or products toother nations.4._______ The ability to produce a specific product moreefficiently than any other product.5._______ All business activities that involve exchangesacross national boundaries.6._______ The total flow of money into a country minus thetotal flow of money out of that country over thesame period of time.7._______ A tax levied on a particular foreign product entering a country.8._______ A complete halt to trading with a particular nationor in a particular product.9._______ An international barter transaction.10. _______ An internationally supported bank that providesloans to developing countries to help them grow.a. countertradeb. foreign exchange controlc. multilateral development bank (MDB)d. absolute advantagee. import…. If a US resident spends $1,000 to buy €880 worth of French burgundy wine, the US balance of payments shows… a) current acct imports of -$1,000 and capital acct exports of +€880 b) current acct imports of -€880 and capital acct exports of -$1,000 c) current acct imports of -$1,000 and capital acct exports of +$1,000 d) capital acct exports of +$1,000 and capital acct imports of -$1,000.The United States’ total international transactions with other countries in 2005 were: U.S. balance on current account: - $748.7 billionFinancial inflows : + $1295.2 billionFinancial outflows : - $532.6 billion Was the current account in surplus or deficit? Was the capital account in surplus or deficit?Was the overall BOP in surplus or deficit?Did the government official reserve transactions account show an increase or decrease of its foreign currency holdings
- The nation of Narnia had a current account deficitof $423 million and a nonreservefinancial account surplus of $360 million in year3695. a.What was the balance of payments of Pecunia in thatyear? What happenedto the country’s net foreign assets? b.If there is a sudden increase in sales of goods andservices to foreigners,what effect do you expect in the Balance of Paymentaccount? c.How would the increase in domestic interest rate inyear 3695 affect thebalance of payment?Exchange rates are an important factor when doing business internationally. Please discuss: a. Potential mechanisms through which exchange rates affect revenues of multinational enterprises (MNEs) doing foreign direct investment (FDI) in a given foeign countryn (include atleast 3 mechanisms ). b. What stratergies can MNEs employ to hedge against the risks of stemming from foreign exchange (include atleast two potential stratergies).Give typing answer with explanation and conclusion to all parts 6. The following list gives the balance of payments account? information: Increase in foreign holdings of assets in the United States ? $1,181 Exports of goods 856 Imports of services ?256 Net transfers - 60 Exports of services 325 Income received on investments 392 Imports of goods ??1,108 Increase in U.S. holdings of assets in foreign countries ?-1,040 Income payments on investments ?315 Assume the balance on the capital account is zero. Based on this? information, fill in the? following: Balance of Trade ?$_____. Balance on Current Account $______. Balance on Financial Account ?$_______. Statistical Discrepancy ?$_______. Balance of Payments ?$________.