Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Chapter 6, Problem 6E
To determine
Given the information regarding the external sector of Mexico, whether the country has come a net debtor.
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China had a $372 billion overall current account surplus in 2007. Assuming that China’s net debt forgiveness was zero in 2007 (its capital account balance was zero), what can you specifically conclude about the relationship of Chinese purchases of financial and real assets abroad versus foreign purchases of Chinese financial and real assets? Explain.
Briefly set out economic factors which might lead naturally to a depreciation of the domestic currency against other countries’ currencies.
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a) payments made to a French airline by Pakistani business people traveling from Pakistan to France
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c) reinvestment in Pakistan of profits by Pakistani owners of clothes companies in Sri Lanka
d) purchase of vacations from Cuba by Pakistani hospitals
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