**Title: Analyzing Azania's Trade Instability**A country, Azania, has been experiencing instability in export and import flows, with its domestic budget tied to its export earnings. The following table reflects these export-import flows. *To obtain full credit, you must show all steps.*| Year | Px | Pm | Qx ||------|----|----|----|| 2012 | 96 | 94 | 100 || 2013 | 92 | 95 | 196 |**Tasks:**a) Calculate Azania's net barter and income terms of trade for the years 2012 and 2013.b) Calculate the changes in net barter and income terms of trade for the years 2012 and 2013.**Explanation:**- **Px**: Price of exports- **Pm**: Price of imports- **Qx**: Quantity of exports**Definitions:**1. **Net Barter Terms of Trade (NBTX):** NBTX = (Px / Pm) × 1002. **Income Terms of Trade (ITX):** ITX = (NBTX × Qx)These formulas will be used to calculate the terms of trade changes over the given years.

Selling of goods and services from the nation of origin to a foreign nation is known as export,…

A country, Azania, has been experiencing instability in export and import flows and has its domestic budget tied to its export earnings. The following table reflects this export-import flows. To obtain full credit, you must show all steps. Px Pm Qx 96 94 92 95 a) Calculate Azania's net barter and income terms of trade for years 2012 and 2013. Year 2012 2013 100 196 b) Calculate the changes in net barter and incomes terms of trade for the years 2012 and 2013.

A country, Azania, has been experiencing instability in export and import flows and has its domestic budget tied to its export earnings. The following table reflects this export-import flows. To obtain full credit, you must show all steps. Px Pm Qx 96 94 92 95 a) Calculate Azania's net barter and income terms of trade for years 2012 and 2013. Year 2012 2013 100 196 b) Calculate the changes in net barter and incomes terms of trade for the years 2012 and 2013.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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