List the relationships that define the balance of payments, and explain where in the Hong Kong balance of payments an entry would be made for each of the following: (a) Hong Kong people donate some goods to Macau in December 2019.  (b) The Hong Kong government sells a 5-year bond to a prince in Saudi Arabia.

Q: Since the 2000s, U.S. trade deficit in goods has increased the most with which of the following…

A: A trade deficit is an amount by which the cost of a country's imports exceeds its exports.

Q: Suppose Country A can produce 30 cars or 400 units of clothing, and Country B can produce 20 cars or…

A: Given information Country A can produce either 30 cars or 400 units of cloth Country B can produce…

Q: Find the invisible balance when the current account balance of payment are 1600 and the trade…

A: As per the question, Current account balance of payment are = 1600 Trade balance are valued as =…

Q: Find the current account balance of payment if the trade balance are 444 and the invisible balance…

A: As per the question, Trade balance are = 444 Invisible balance = 180 Current account balance of…

Q: Suppose the US is running a trade deficit. According to our simplified model of exchange rate…

A: The balance of payment account is a record of all international transactions made by an economy over…

Q: Suppose that several large foreign countries decrease government spending, leading to an increase in…

A: In a small economy, if several large foreign countries decrease government spending, leading to an…

Q: Explain 3 factors why countries would want to join a Single Currency area.

A: Under the single currency area, different economies used a single currency in order to get benefits…

Q: Under a system of fixed exchange rates, explain how a Caribbean government uses two(2) economic…

A: Under fixed exchange rates, a government can influence its trade balance by using two economic…

Q: You are given the following information: Exports X = 1,300 Imports M = 2,000 Capital inflows ki =…

A: here we calculate the Net export , net capital flow and the balance of payments , so the calculation…

Q: Suppose that after World War II, the United States and France agree to peg their currencies to each…

A: The Bretton Woods system was designed to foster global monetary cooperation as well as stability in…

Q: list all the countries in the world and their trade currencies

A: Here is a more comprehensive list of countries and their official currenciesAfghanistan: Afghani…

Q: In which of the following circumstances should a small open economy run a trade deficit? Select all…

A: An economy that's hospitable trade and to flows of capital across its borders which is little…

Q: Discuss the four main functions of foreign exchange markets for global businesses.

A: Foreign exchange means the process of converting one currency into another, facilitating…

Q: There are questions related to International Factor Movements and Multinational Enterprises 1. Is…

A: Trade is a term used for exchange, which can be voluntary in nature where both the parties involved…

Q: The difference between the current account and total trade (merchandise trade and service trade) is…

A: Introduction- Current account means the nation earns more than it spends. Total trade includes the…

Q: Foreign investment is counted under capital account of balance of payments.  True/False

A: In international macroeconomics the capital account of the balance of payment is account which keeps…

Q: https://www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services   Using…

A: Goods, products, or services that are purchased from other countries and are brought into the…

Q: What was the primary benefit of a single European currency? a elimination of confusion for…

A: A "single currency" is a term used to describe a unit of money that is used by more than one nation:…

Q: The following information on Ghana’s Balance of Payments Accounts for 2013 (million U.S.…

A: Solution: 1. Calculation of Ghana current account: Current Account: It refers to the account that…

Q: Under a system of fixed exchange rates, explain how a Caribbean government uses one (1) economic…

A: A fixed exchange rate is a monetary policy where the government sets a fixed value for the country's…

Q: define, explain, and analysis the drivers and impacts of trade such as dynamics of money and…

A: Introduction Trade is when things exchanged with one another in the country or out of country.…

Q: Country C is a highly trade-dependent economy operating under a managed float exchange rate system.…

A:

Q: Discuss exchange rates and their influence on international trade and capital flows.

A: Exchange rates assume a vital part in the worldwide economic landscape, filling in as a critical…

Q: A case study in the chapter analyzed purchasing-power parity for several countries using the price…

A: Step 1: Calculate the predicted exchange rate between Colombian peso and USD…

Q: Explain briefly what international investment law does. Why is it important? Is it a good or bad…

A: Investing means putting money into something with the prospect of a future benefit or return. To put…

Q: Roll over each item below to read the description of a transaction. Then, drag each transaction to…

A: The trade agreements between cross borders that require foreign currency for trade is referred to as…

Q: In your opinion, how can we attract new foreign investors to our country in order to develop our…

A: Foreign investment refers to a situation when the individual from a foreign country invest in…

Q: INTERNATIONAL TRADE   Which of the following are direct foreign investments? Explain your answer.…

A: There are two types of international investments :- Direct foreign investment Portfolio foreign…

Q: Discuss the effect of Purchasing power Parity and Interest Rate Parity on Exchange Rates

A: The exchange rate (XER) refers to the valuation of one currency in terms of another currency. XERs…

Q: Define favourable and non favorable balance of trade

A: When exports are greater than imports,it would be known as favourable balance of trade.

Q: Discuss why a host country might promote or restrict foreign direct investment.

A: Foreign direct investment (FDI) is a kind of cross-border investment in which a stake in and…

Q: Balance of payments adjustments can happen when a country has a trade surplus with other countries…

A: Balance of Payments refers to the systematic record of all economic transactions between residents…

Q: Suppose Country X experienced a decline in the trade of manufactured goods. To account for this,…

A: Trade Deficit: A trade deficit occurs when a country's imports of goods and services exceed its…

Q: The table below contains 2014 balance of payments accounts for Germany (in billions of Euros).…

A: Merchandise trade balance (balance on goods) = Exports of goods - Imports of goods Balance on goods…

Q: , if a fo

A: Tariffs are taxes being imposed by the government on imports. They would raise the price for…

Q: The current account balance consists of the trade balance plus the services balance. net exports of…

A: The current account is a critical part of a nation's balance of payments, which is a record of all…

Q: Calculate the Ghana Current Account. Calculate the Ghana Capital and Financial Account Balance. What…

A: Balance of Payment is the records of all the transactions that are made between the residents of one…

Q: Under a system of fixed exchange rates, explain how a Caribbean government uses fiscal policies to…

A: Fixed exchange rate: A country’s exchange rate signifies the total amount of domestic currency…

Q: List two advantages Chile face by using foreign investment.

A: Chile is one of the emerging countries of the world. It is ranked as 17th largest FDI recipient of…

Q: The following balance of payments data is for the economy of Augusta: Foreign investment in Augusta…

A: The balance of trade, commercial balance, or net exports, is the difference between the monetary…