The table below shows the payments received from foreigners by the residents of the US and the payments made to foreigners by US residents during a certain year, measured in billions of dollars Payments from Foreigners Payments to Foreigners Trade in goods and services $2,612 $2,713 Factor payments Transfer $802 $621 $128 $289 Payments

The table below shows the payments received from foreigners by the residents of the US and the payments made to foreigners by US residents during a certain year, measured in billions of dollars Payments from Foreigners Payments to Foreigners Trade in goods and services $2,612 $2,713 Factor payments Transfer $802 $621 $128 $289 Payments

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 18SCQ: How did large trade deficits hurt the East Asian countries in the mid 1980s? (Recall that trade...

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determine the purchasing power of the country China for aconsumer good that they would buy from their Canadian trading partner. Also, calculate whatCanada’s purchasing power is with a country that they import from. See example below on Coca Colaand Mexico. Purchasing Power Example In the example of the picture, if a Canadian company operating in Mexico were to pay its Mexican employeesthe equivalent of $10/hour CAD (or 100 pesos/hour according to our fictional exchange rate), theMexican employee would actually enjoy greater purchasing power (the ability to acquire 20 colasversus only 10 colas) than his/her Canadian counterparts.
wouldn't the answer be $184 since you also have to subtract net transfers abroad - debit loss of $10. (GDP+net income earned by foreign investment - investment income paid to foreigners + net transfers) $200+$22-$28-$10 = $184
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