Suppose a country has an overall balance of trade so that exports of goods and services equal imports of goods and services. Does that imply that the country has balanced trade with each of its trading partners

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: how can countries attain/account for trade equilibria when involved in trade transactions?

A: Getting involved in trade transactions means trading in the goods and services with the rest of the…

Q: trade surplus (exporting more than importing) and trade deficit (importing more than exporting) on…

A: The ‘balance of trade’ (BOT) is the sum of a country's import and export.   The BOT is positive(+)…

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: If the dollar increases in value against your INR(It takes more foreign currency to buy one dollar,…

A: Currency appreciation and depreciation refer to changes in the value of a currency relative to other…

Q: An empirical fact is that a country with more openness to trade than another also has higher GDP.…

A: Gross domestic product (GDP): It is the total monetary or market value of all the finished goods and…

Q: Will nations that are more involved in foreign trade tend to have higher trade imbalances, lower…

A: Foreign trade pattern is depending upon many factors and it is not predictable.   The trade patterns…

Q: suppose Qd=-33*p+608, Qs=20*P+10 for home and Qd*=-33*p+401, Qs*=20*P+35 for foreign. What is the…

A: Answer in step 2

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: If you observed a country with a rapidly growing trade surplus over a period of a year or so,would…

A: While trade deficit is not always harmful for country growth, thus, rapidly growing country in trade…

Q: If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed…

A: ANS If the total amount of goods & services a country imports from other countries of the world…

Q: What is a trade deficit, and why does it hurt us to consistently run a deficit with another country?

A: Answer: Introduction: A trade deficit occurs when a country imports more than what it exports. It is…

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: In a recession, the trade balance often improves because

A: Recession is a term used to describe a slowdown in the economy that persists over a few months.…

Q: How do you measure the financial capacity of our country in terms of export and import

A: The financial capacity of the country in terms of export and import can be measured by the BOT…

Q: Determine whether a country will become a net-importer or net-exporter of agood when it moves from…

A: Autarky refers to the situation of a country when the country is fully self-sufficient or in other…

Q: Why is the bilateral trade balance not necessarily a good measure of the trade relationship between…

A: The bilateral trade stability, which measures the difference between the value of goods and services…

Q: President Trump is currently getting tough on trade. This means he wants terms of trade so that…

A: Terms of trade refer to the price of exports in terms of the price of imports. Betterment of terms…

Q: The balance of trade refers to the balance of imports and exports. True or false

A: Balance of payments is the records of all the transactions of the economy with the rest of the…

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: Find the value of balance of trade when the value of exports are $16 and value of imports are $11?

A: As per the question, Value of Exports are = $16 Value of the imports = $11 Balance of trade = ?

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: Last year, a country's GDP was $60 billion, and its level of trade was 15 %. This year, the…

A: To calculate the country's level of trade this year, we need to follow these steps: Step 1:…

Q: “Trade policies determine the size of markets for the output of firms and hence strongly influence…

A: International business is done with the goal of expanding and diversifying commercial activities…

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: Suppose for a given country the demand for imports and exports can be expressed as shown below.…

A: Trade balance is the difference between Export and import.  This means Net Export as the Net export…

Q: nation is said to have an absolute advantage when   the nation can produce more of a certain product…

A: Opportunity cost is the sacrifice in the production of other good, needed to produce more of one…

Q: On what two factors does the return on a foreign investment depend?

A: Foreign investment can be referred as the investment on the asset and domestic firm of another…

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: NAFTA has improved Mexico-U.S. trade and investment, yet, bilateral trade between the United States…

A: Trade means goods and services are exported to other countries and imported from outside the…

Q: Discuss how nations use expenditure-changing policies and expenditure-switching policies to achieve…

A: In this situation:- since the 1930s, nations have actively pursued internal balance as a primary…

Q: Who loses when a country imports cheaper goods from abroad?

A: In am economy, people generally make import of goods and services that are available at lower price…

Q: A country that is spending more than it makes a- unstable b- trade balance c- trade deficit c-…

A: The country's commerce and economic activity can be measured by looking at the balance of trade. It…

Q: Graphically, when is the balance of trade equal to zero? Multiple Choice   When the rising IM line…

A: Export (X) remains constant at each level of GDP level.  Hence, the Export (X) curve is horizontal…

Q: Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the…

A: The nations around the world tend to get involved in trade with each other, where the nations sale,…

Q: It is impossible that a country runs a negative trade balance over decades.  True  False

A: Balance of trade is a concept through which a country can always keep track of all its 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: Has trade deficit impacted the U.S. economic growth?

A: In international trade, different countries of the world import and export goods and services from…

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: How a devaluation may reduce the trade deficit of a country? What condition is required to reduce…

A: Devaluation is the fall in the value of a country's currency. As a result of fall in exchange rate,…