The table below gives the data about Etruria's balance of payments. (All figures are in billions of dollars.) Foreign investment in Etruria82Secondary (transfers) income received from abroad13Primary (investment) income received from abroad9Imports of goods and services148Exports of goods and services152Secondary (transfers) income paid abroad8Etruria investment abroad64Primary (investment) income paid abroad25 a. What is the value of the balance of trade? $ b. What is the balance on the current account? Remember to enter a minus (−) sign to indicate negative values. c. What is the balance on the capital account? d. Is there a balance of payments surplus or deficit? How much?

Here we have to calculate the balance of trade, balance on the current account, balance on the…

Answered: The table below gives the data about…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

The table below gives the data about Etruria's balance of payments. (All figures are in billions of dollars.)

Foreign investment in Etruria	82
Secondary (transfers) income received from abroad	13
Primary (investment) income received from abroad	9
Imports of goods and services	148
Exports of goods and services	152
Secondary (transfers) income paid abroad	8
Etruria investment abroad	64
Primary (investment) income paid abroad	25

a. What is the value of the balance of trade?

b. What is the balance on the current account? Remember to enter a minus (−) sign to indicate negative values.

c. What is the balance on the capital account?

d. Is there a balance of payments surplus or deficit? How much?

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Expert Solution

Step by step

Solved in 6 steps with 9 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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