CHAPTER 10: OPEN ECONOMY: BASIC CONCEPT AND THE MACROECONOMY THEORY Question 1 How would the following transactions affect Malaysian exports, imports and net exports? a) A Malaysian professor spends the summer touring museums I Europe. b) Students in Kuala Lumpur flock to see the latest movie Group 2, 5 & 8 from Hollywood, U.S.A. c) Your uncle buys a new Toyota. d) The students bookstore at National University of Singapore sells Royal Selangor Pewter. e) A Thai citizen shops at a store in Kota Bharu. Question 2 Would each of the following transactions be included in net exports or net capital outflow? Be sure to say whether it would represent an İncrease or a decrease in that variable. Group 3, 6 & 9 a) A Malaysian buys a Sony TV. b) A Malaysian buys a share of Sony stock. c) The Japan pension fund buys a bond from the Malaysian Treasury. d) A Japanese buys some durians from a Malaysian farmer. Question 8 Would each of the following groups be happy or unhappy if ringgit appreciated? Explain. a) Hong Kong pension funds holding Malaysian government bonds. Group 1, 4 & 7 b) Malaysian manufacturing industries. c) Australian tourists planning a trip to Malaysia. d) A Malaysian firm trying to purchase property overseas.

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