(a)
The head under which the entries with respect to balance of payment will be recorded.
Concept Introduction:
The overall difference between the inflow and outflow of payments that take place in a country during a specific time period is known as Balance of Payments.
(b)
The head under which the entries with respect to balance of payment will be recorded.
Concept Introduction:
The overall difference between the inflow and outflow of payments that take place in a country during a specific time period is known as Balance of Payments.
(c)
The head under which the entries with respect to balance of payment will be recorded.
Concept Introduction:
The overall difference between the inflow and outflow of payments that take place in a country during a specific time period is known as Balance of Payments.
(d)
The head under which the entries with respect to balance of payment will be recorded.
Concept Introduction:
The overall difference between the inflow and outflow of payments that take place in a country during a specific time period is known as Balance of Payments.
(e)
The head under which the entries with respect to balance of payment will be recorded.
Concept Introduction:
The overall difference between the inflow and outflow of payments that take place in a country during a specific time period is known as Balance of Payments.
(f)
The head under which the entries with respect to balance of payment will be recorded.
Concept Introduction:
The overall difference between the inflow and outflow of payments that take place in a country during a specific time period is known as Balance of Payments.
(g)
The head under which the entries with respect to balance of payment will be recorded.
Concept Introduction:
The overall difference between the inflow and outflow of payments that take place in a country during a specific time period is known as Balance of Payments.
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Chapter 20 Solutions
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
- 20- Balance of payments (BOP) is measuring all international economic transactions between the residents of a country and foreign residents. Please expand the statement by discussing what economic activities are measured by BOP? And why it always be balanced?arrow_forward2. Exports, imports, and Net exportsarrow_forward-> Difference between value is exports and imports of goods and services is called trade balance True/Falsearrow_forward
- (1) What is balance of payments? How could (2) the acquisition of a Moldovan soft drinks company by a US company for 5 million dollars in 2018 and (3) annual profits from the US investment in Moldova at 145.000 $ in 2019 be recorded in the balance payments in Moldova and the USA in 2018 and 2019. (Please answer 1,2,3 seperately.)arrow_forward7- : What is the total expenditure made by consumers on the purchase of goods and services called? a) Net foreign trade B) Savings spending NS) Consumption expenditure D) investment expenditure TO) public spendingarrow_forward6. Most foreign exchange transactions are through the U.S. dollar. If the transaction is expressed as the foreign currency per dollar this is known as _____________ whereas ___________ are expressed as dollars per foreign unit. a. European terms; indirect b. American terms; direct c. American terms; European terms d. European terms; American termsarrow_forward
- 40. Thailand is a net-importer. This means that they import more than they export. How does this affect the value of their currency with respect to foreign exchange? a.their currency will not be affected b.their currency will become strong c.their currency will become weak d.None of thesearrow_forward9 How free trade zones or special economic zones affect exports.arrow_forward7.A Investment spending A. responds more dramatically to changes in interest rates than to changes in business confidence, expectations, or technology. B. typically increases when the interest rate falls. C. does not respond to short-term interest rates. D. responds negatively to technical change and product innovation. 7.B Net exports in the United States A. will fall if prices in the United States rise relative to other nations' prices. B. will fall if China reduces trade barriers against the United States. C. will increase if prices in the United States rise relative to other nations' prices. D. will increase if the price level in China declines. 7.C In an Aggregate Demand (AD)/Aggregate Supply (AS) diagram, __________________________ could explain a rise in cyclical unemployment? A. a shift in AS to the left B. a shift in AS to the right C. a shift to the left in either AS or AD…arrow_forward
- 9-A UK trader exported goods to a Chinese trader at GBP 50,000. The exchange rate on the day of a transaction is GBP 0.250/CNY. The importer agreed to pay GBP 50,000 pounds after one month. Due to changes in the economic conditions in China, the CNY depreciates and the exchange rate moved to GBP 0.100/CNY on the settlement day. Which one of the following is the effect of the above foreign exchange rate movement on the Chinese trader? a. The time gap between transaction and settlement date increases the cash flow to the UK trader and decreasing operating profitability b. None of the options c. The time gap between transaction and settlement date increases operating profitability d. The time gap between transaction and settlement date decreases operating profitabilityarrow_forward12. Imagine that you are the manager of a company considering direct foreign investment. What country would you choose? Discuss the risks and benefits, government incentives, and political factors you considered in your decision. Please do not use anything that's already posted. Thanks.arrow_forward3. Exchange rates and U.S. exports: A graphical relationship The following graph shows exports from the United States to Japan. (Note: U.S. exports are measured in yen on this graph, which will enable you to see U.S. exports on the same graph as Japanese exports in a later problem.) [Please see the image] Referring to the graph, why does the line showing exports from the United States slope upward? 1. The lower the price of the yen in term of dollars, the lower the exports from the United States to Japan. 2. The higher the price of the yen in term of dollars, the higher the exports from Japan to the United States. 3. The higher the price of the yen in term of dollars, the lower the exports from the United States to Japan. 4. The lower the price of the yen in term of dollars, the higher the exports from the United States to Japan. Suppose that the exchange rate goes from $10 per 1,000 yen to $8 per 1,000 yen. On the previous graph, adjust the…arrow_forward
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