Question: Exercise 1:4. Calculate the net capital flow. Does this country experience a net capital inflow or 
outflow? Exercise 2:1.Calculate the net capital flow? Is this country experiencing a net capital inflow or outflow? 
2.Calculate the country’s basic balance.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
100%
Question:
Exercise 1:4. Calculate the net capital flow. Does this country experience a net capital inflow or 
outflow? Exercise 2:1.Calculate the net capital flow? Is this country experiencing a net capital inflow or outflow? 
2.Calculate the country’s basic balance.
Account
Goods: exports
Goods: imports
Services: credit
Services: debit
Income: credit
Income: debit
Current transfers: credit
Current transfers: debit
Capital Account balance
Financial Account balance
2015
1500
-2200
750
-400
300
-250
400
-150
-14
1150
2016
1300
-1500
800
-350
350
-280
300
-160
-16
1200
2017
1100
-1700
650
-500
450
-320
250
-100
-13
1100
Required: Use the above information to:
a. Calculate the trade balance.
b. Calculate the service balance.
c. Calculate the current account.
d. Calculate the net capital flow. Does this country experience a net capital inflow or
outflow?
Transcribed Image Text:Account Goods: exports Goods: imports Services: credit Services: debit Income: credit Income: debit Current transfers: credit Current transfers: debit Capital Account balance Financial Account balance 2015 1500 -2200 750 -400 300 -250 400 -150 -14 1150 2016 1300 -1500 800 -350 350 -280 300 -160 -16 1200 2017 1100 -1700 650 -500 450 -320 250 -100 -13 1100 Required: Use the above information to: a. Calculate the trade balance. b. Calculate the service balance. c. Calculate the current account. d. Calculate the net capital flow. Does this country experience a net capital inflow or outflow?
Account
Current Account balance
Capital Account balance
Financial Account balance
Reserves and related items
Net errors and omissions
2011
136,097
5,446
260,024
-387,799
-13,768
2012
193,139
4,272
21,064
-96,555
-79,773
equired: Use the above information to calculate:
a. Calculate the net capital flow? Is this country experiencing a net capital inflow or
outflow?
b. Calculate the country's basic balance.
Transcribed Image Text:Account Current Account balance Capital Account balance Financial Account balance Reserves and related items Net errors and omissions 2011 136,097 5,446 260,024 -387,799 -13,768 2012 193,139 4,272 21,064 -96,555 -79,773 equired: Use the above information to calculate: a. Calculate the net capital flow? Is this country experiencing a net capital inflow or outflow? b. Calculate the country's basic balance.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Exchange Rate
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education