Balance of trade
Which transactions find out the balance of trade? When the balance of trade is in surplus?
Expert
Exports of goods and imports of goods find out BOT. Whenever the value of exports of goods is bigger than the value of imports of goods.
China is a huge manufacturer of technology of telephone devices. It has lately become a member of W.T.O. that means it can sell its products in other member countries such as India. Assume that it does export a big number of telephone instruments to India:
Explain how foreign exchange rate is determined beneath flexible exchange rate system. Beneath flexible exchange rate system, the equilibrium exchange rate is found out where demand for foreign exchange is equival
Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
Question 1: The financial crisis that hit the United States first and then the world economy starting in fall 2007 meant that the future prospects of many firms looked gloomy at best for some time. Comment on the e
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
I NEED TO UNDERSTAND MORE ABOUT PRODUCTION POSSIBILITY FRONTIER
Supply of foreign exchange: (A) By exports of services and goods(B) Direct foreign investment in residence country(C) For approximate purchases by non-residents in the home country(D) Remittances
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