Suppose a country has an overall balance of trade so that exports of goods and services equal imports of goods and services. Does that imply that the country has balanced trade with each of its trading partners

Q: Explain why a stronger dollar could enlarge the U.S. balance-of-trade deficit. Explain why a weaker…

A: Balance of trade deficit refers to the situation of excess imports in the country over the exports…

Q: trade surplus (exporting more than importing) and trade deficit (importing more than exporting) on…

A: The ‘balance of trade’ (BOT) is the sum of a country's import and export.   The BOT is positive(+)…

Q: When a country exports more goods and services than it imports, this is called Multiple Choice a…

A: Exports refer to those goods and services which are produced in one country and supplied to another.

Q: If a country imports more than it exports, it has a trade deficit. True or false

A: Balance of payments is the difference between the the value of the trade exports and imports in the…

Q: Will exchange rates correct a balance-of-trade deficit? Consider the case of a balance-of-trade…

A: The balance of trade deficit occurs when the value of imports of a country exceeds the value of its…

Q: Display graphically changes in the value of domestic currency, if the domestic price level remains…

A: If the domestic price level remains constant in domestic country and increases in other countries…

Q: The is the difference between money flowing into a country from exports, and money leaving the…

A: Answer: Correct option: E (Balance of payments) Explanation: Balance of payments shows the…

Q: If the dollar rises in value against other currencies, this will Multiple Choice lower our trade…

A: Appreciation of currency refers to the increase in the value of one currency as compared to the…

Q: Who would demand U.S. dollars in the foreign exchange market? U.S. firms and households wishing to…

A: Foreign Exchange Market: The foreign exchange market can be defined as an  institution which…

Q: What is the difference between foreign sales revenues and foreign purchase expenses called? A)…

A: In the international market, as the home country makes a record of all the inflow and outflow of…

Q: The Purchase Price Parity (PPP) is an economic theory that estimates the amount that must be…

A: Hi! thanks for the questions but as per the guidelines we can answer only one question at one time.…

Q: Assuming that a country has a trade deficit of $50 billion, which of the following is true: A. The…

A: During a given time period when the imports of a country are greater than exports of the country ,…

Q: Thailand is a net-importer. This means that they import more than they export. How does this affect…

A: The exchange rate refers to the rate at which currency of one country can be exchanged with the…

Q: The balance of trade refers to the balance of imports and exports. True or false

A: Balance of payments is the records of all the transactions of the economy with the rest of the…

Q: At the end of 2016, foreign investors owned over $8 trillion more of U.S. assets than U.S. investors…

A: A country is said to be a net debtor when it faces relatively more foreign liabilities than foreign…

Q: Find the value of balance of trade when the value of exports are $16 and value of imports are $11?

A: As per the question, Value of Exports are = $16 Value of the imports = $11 Balance of trade = ?

Q: Display graphically changes in the value of domestic currency, if the domestic price level increases…

A: Price level tells us the average price of all goods and services of a country.

Q: if US citizen decides to consume less and save more, then the foreign-exchange price of the dollar…

A: Exchange rate is the rate at which the nation's currencies are exchanged.  And it is determined at…

Q: State true/False Difference between value of exports and imports of goods and services is called…

A: The balance of trade or net exports is the difference between the monetary value of a country's…

Q: What impact will an appreciation of the dollar have on the relative price of foreign goods to…

A: If the dollar appreciates, then the exchange rate increases. The relative price of domestic goods…

Q: State whether each of the following events involves a financial flow to the Mexican economy or a…

A: Financial flows refer to the movement of financial capital, such as money for investments from…

Q: The following figure shows the Current Account Balance (similar to the Trade Balance) of Japan…

A: The balance of payments (BOP) is known to summarize all of the transactions which…

Q: - Explain very briefly about elasticity approach, national income approach, absorption approach, and…

A: Elasticity approach  The elasticity approach tries to predict the outcome policy changes will have…

Q: Other fundamental things equal, a decrease in the exchange rate value of the domestic currency will…

A: An Exchange Rate(ER) is the value of the currency of a nation with the currency of another nation or…

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: Foreign exchange rates refer to the  price at which purchases and sales of foreign goods take place…

A: The exchange rate is the utmost vital determining factor of a state's comparative level of financial…

Q: Who would benefit if the exchange rate with yen (in U.S. dollars) increased (i.e. one dollar can buy…

A: Exchange rate refers to the rate at which a country’s currency can be traded for another country’s…

Q: Investment equals $2,120 million in your country. Private saving is $2,750 million and the…

A: Trade balance: - trade balance is the difference between a country’s exports and imports in terms of…

Q: If the US dollar appreciated against the Japanese yen what would you expect to happen to US net…

A: In the flexible exchange rate system, when the value of domestic currency increases in terms of…

Q: China had a $372 billion overall current account surplus in 2007. Assuming that China’s net debt…

A: The current account computes the import and export of services and commodities of a country over the…

Q: If the balance of trade are stated as 750 and the imports of goods are 650 find the export o

A: Balance of trade is the difference between the country's export and country's import.  i.e., Balance…

Q: How can a country fix its exchange rate to another? Is it sustainable for them to maintain it fixed?

A: The regime where the government fixes its exchange rate(e) with other country is called ‘Fixed…

Q: Suppose that during a recent year for the United States, merchandise imports were $2 trillion,…

A: A merchandise trade deficit occurs when a country imports more goods than it exports in a given span…

Q: When the dollar decreases in value relative to other currencies, which group (exporters/importers)…

A: A weaker domestic currency stimulates exports and makes imports more expensive. A falling dollar…

Q: In 2010, the country of Vesey exported goods worth $312 billion and services worth $198 billion. It…

A: Merchandise Trade deficit is defined as the Total value of goods imported less totàl value of goods…

Q: What is the meaning of a surplus (deficit) on the current account balance? What economic…

A: Current Account Balance A balance of payment is a statement that records all the transactions of a…

Q: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit…

A: Given information:

Q: Suppose that during 2004, country A had exports of goods of $50, imports of goods of $60, exports of…

A: Current account records all the economic transactions between residents of one country and rest of…

Q: Find the value of balance of trade if the value of exports are $61 and the value of imports are $8?

A: The value of a nation's export and import depend on the exchange rate of the domestic currency in…

Q: what does it mean to say that a currency appreciates? Depreciates? Becomes stronger? Becomes weaker

A: Currency is known as the medium of exchange. It is accepted as a form of payment and is famous for…

Q: As domestic currency appreciates, we would expect   a. Trade deficit to decrease.   b. Trade deficit…

A: Appreciation of the currency refers to the increase in the price of the currency in terms of other…

Q: A trade deficit means a net    inflow of payments for goods and services outflow of goods and…

A: In foreign trade,  exports signify the amount of domestic goods and services that foreign firms and…

Q: How and why will switching from a flexible to fixed exchange rate regime affect exports as a…

A: It is the rate at which one country's currency may be exchanged for another. For example, if one…