Balance of trade
Which transactions find out the balance of trade? When the balance of trade is in surplus?
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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.
Determine the factors accountable for inflow of foreign currency? Answer: a) Foreigners buying home country services and goods via exports. b) Foreigners investment in home country via joint ventures and via
Assume that El Salvador can generate coffee at lower opportunity costs than Spain, whereas Spain can generate olive oil at lower opportunity costs than El Salvador. The citizens of both countries can potentially profit from international trade since of the efficiency
Fixed exchange rate system (or pegged exchange rate system): This is a system in which exchange rate of a currency is fixed by government. This system makes sure stability in the foreign trade and capital movement.
Describe the meaning of deficit in BOP: Whenever autonomous foreign exchange payments surpass autonomous foreign exchange receipts, the difference is termed as balance of payments deficit.
suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%
State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?
distinguish between autonomous transactions and accommodating transactions under balance of payments
If a Hawaiian can produce 50 bushels of either potatoes or pineapples per acre, whereas an Idahoan manages just 3 bushels of pineapples or 30 bushels of potatoes per acre, then: (1) Idaho’s absolute drawbacks prevent gains from specialization and exchange. (2) T
Balance of payment: It is a systematic record of each and every economic transaction of a country with the rest of world in an accounting year.
Who won the Nobel Prize for Economics in 1997?
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