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 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: 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: 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: 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: Capital flight is the sudden large drop in demand for domestic assets. Explain the following: if we…

A: Capital flight is the flow of domestic financial resources to foreign countries. The capital flight…

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: 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: 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: 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: , 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: 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…

Q: When natural disasters like a hurricane, tsunami, or earthquake occur in other countries of the…

A: The balance of payments (BoP) keeps track of all economic exchanges of goods, services, and assets…

Q: A country whose National Saving is greater than its Investment will experience a Not enough…

A: In economics, savings refer to the income unsued. In other words, savings means income left after…

Q: oreign countries start to subsidize investment by instituting an investment tax credit. a) What…

A: A tax credit is an incentive being offered which in turn allows the taxpayers for reducing the tax…

Q: Scroll down to "U.S. Trade in Goods and Services by Selected Countries and Areas, 1999 - Present"…

A: Goods, products, or services that are produced or provided within a country's borders and are sold…

Q: The figure below shows the flow of goods, services, and payments between Kenya (home country) and…

A: 1) The top section keeps track of the flow of exports and imports, as well as the payments…

Q: and

A: With the increase in world price of wheat, the total revenue of exporting country will increase,…

Q: QUESTION 3 As trade distortions such as tariffs and quotas in a small country are removed, dead…

A: Tariffs refer to the tax imposed on the import of a certain good or service from outside the country…

Q: How does a depreciation or devaluation of a nation’s currency operate to eliminate or reduce a…

A: Introduction  A country devalues ​​its currency to combat a trade imbalance, which means that an…

Q: 's total fo

A: The balance of payments is a statement of all transactions which are made between the entities in…

Q: The impacts of the trade war regarding the determination of foreign exchange rates based on supply…

A: A trade war happens when one country imposes trade barriers in another country's imports and…

Q: Discuss the role of foreign exchange in international trade.

A: The measure which depicts the value of one currency in terms of another currency is known as the…

Q: Q.1.2 A deficit on the current account of a country's balance of payments can be financed by a…

A: The balance of payments (BOP), sometimes known as the balance of international payments, is a…

Q: Discuss this statement : " Because each nation's balance of payments equals zero , it follows that…

A: The goal of a balance of payments deficit or surplus is to comprehend the debt or rest in a…

Q: Explain three (3) factors why countries would want to join a Single Currency area

A: A single currency is a point at which various nations consolidate their monetary forms into one…

Q: QUESTION 31 Country A imports $40 of shirts and exports $40 of under wears. Its balance of trade is…

A: All answers for 31 32, 33 given below,

Q: Explain why a currency depreciation leads to an improvement in a country’s trade balance

A: Answer to the question is as follows :

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

A: Under a system of floating exchange rates, a Caribbean government can use monetary policy to…

Q: When there are two large open economies in the world, if desired international borrowing by the…

A: An open economy is an economy that interacts with the rest of the world through international trade…