Tables 1 and 2 are related with the capital flows to hypothetical emerging market countries Bonasia and Ronasia. For the countries, describe developments in terms of the relationship among reserves, capital in(out)flows excluding reserves, net and current account balance in 2014 and 2015 (expected). Capital Flows S billion 1: Bonasia 2015 2014 2015 Tables 2: Ronasia 2014 Total Inflows, Net Private Inflows, Net Equity Investment, Net Direct Investment, Net Portfolio Investment, Net Private Creditors, Net Commercial Banks, Net Nonbanks, Net Official Flows, Net International Fin. Inst. Bilateral Creditors 103 88 621 193 80 445 98 615 187 53 45 380 35 375 365 15 -193 40 13 10 70 45 35 170 28 25 70 -166 17 10 100 -27 5 6 3 4 4 4 5 2 Capital Outflows - 28 -803 -545 -610 -750 -219 -250 -391 -500 -168 Private Outflows, Net Equity Inv., Abroad, Net -150 - 65 Other, -165 - 45 Resident Lend., - 85 -120 Net Reserves(-Increase) Сapital - 18 205 137 -193 11 -557 In(Out)flows, - 47 77 excluding Reserves, Net Current Account Balance 65 - 60 182 352

Tables 1 and 2 are related with the capital flows to hypothetical emerging market countries Bonasia and Ronasia. For the countries, describe developments in terms of the relationship among reserves, capital in(out)flows excluding reserves, net and current account balance in 2014 and 2015 (expected). Capital Flows S billion 1: Bonasia 2015 2014 2015 Tables 2: Ronasia 2014 Total Inflows, Net Private Inflows, Net Equity Investment, Net Direct Investment, Net Portfolio Investment, Net Private Creditors, Net Commercial Banks, Net Nonbanks, Net Official Flows, Net International Fin. Inst. Bilateral Creditors 103 88 621 193 80 445 98 615 187 53 45 380 35 375 365 15 -193 40 13 10 70 45 35 170 28 25 70 -166 17 10 100 -27 5 6 3 4 4 4 5 2 Capital Outflows - 28 -803 -545 -610 -750 -219 -250 -391 -500 -168 Private Outflows, Net Equity Inv., Abroad, Net -150 - 65 Other, -165 - 45 Resident Lend., - 85 -120 Net Reserves(-Increase) Сapital - 18 205 137 -193 11 -557 In(Out)flows, - 47 77 excluding Reserves, Net Current Account Balance 65 - 60 182 352

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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