Calculate the values of exports, imports, and
Explanation of Solution
Table-1 shows the values of exports, imports, and balance of trade of the top five trading partners of the U S in 2014 below:
Table-1
Country | Exports(in dollar) | Imports ( in dollar) | BOT (in dollar) |
Can | 374,864 | 384,428 | −9,564 |
Chi | 167,207 | 482,323 | −315,116 |
Mex | 270,721 | 320,889 | −50,168 |
Jap | 114,712 | 167,916 | −53,205 |
Germ | 77.823 | 156,986 | −79,163 |
The value of the exports and imports of different products will vary.
In the case of Can, they export and import the same products with the US, such as fuel, vehicle, and machinery.
Chi imports mainly agricultural items from the US and exports of furniture, toys, machinery, clothes to the US.
Mex exports and imports the same products with the US, such as fuel, vehicle, and machinery.
Jap exports and imports the same products with the US, such as medical instruments, aircraft, and machinery.
Germ exports machinery, vehicle, and pharmaceutical products to the US and imports aircraft, machinery, medical instruments, and pharmaceutical products from the US.
Exports: Exporting is the process of sending goods and services from one country to another country as part of the trade transaction.
Imports: Importing is the process of implementing goods and services from one country to another country as part of the trade transaction.
Balance of trade: The balance of trade shows the difference between the exports and imports in a country.
Want to see more full solutions like this?
Chapter 20 Solutions
PRINCIPLES OF MICROECONOMICS LOOSE LEAF
- In recent decades, has the U.S. trade balance usually been in deficit, surplus, or balanced?arrow_forwardExplain briefly whether each of the following would be more likely to lead to a higher level of trade for an economy, or a greater imbalance of trade for an economy. Living In an especially large country Having a domestic investment rate much higher than the domestic savings rate Having many other large economies geographically nearby Having an especially large budget deficit Having countries with a tradition of strong protectionist legislation shutting out importsarrow_forwardDoes a trade surplus mean an overall inflow of financial capital to an economy, or an overall outflow of financial capital? What about a trade deficit?arrow_forward
- Some economists warn that the persistent trade deficits and a negative current account balance that the United States has run will be a problem in the long run. Do you agree or not? Explain your answer.arrow_forwardWhat is the difference between trade deficits and balance of trade?arrow_forwardWhen is a trade deficit likely to work out well for an economy? When is it likely to work out poorly?arrow_forward
- State whether each of the following events Involves a financial flow to the Mexican economy or a financial flow out of the Mexican economy: Mexico Imports sen4ces from Japan Mexico exports goods to Canada U.S. investors receive a return from past financial investments in Mexicoarrow_forwardIn 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.arrow_forwardIf imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed imports?arrow_forward
- Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningExploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc