Define net export and net capital outflow.

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Answer 1

Question

Chapter 31, Problem 1QR

To determine

Define net export and net capital outflow.

Expert Solution & Answer

Explanation of Solution

The net export is the difference between the value of a country’s export and the value of a country’s import. It is also known as trade balance. The net capital outflow is the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.

The net export and net capital outflow are related to each other. That is, for an economy, net capital outflow must always be equal to the net export. Symbolically, it can be shown as NCO=NX.

Economics Concept Introduction

Concept introduction:

Net export (NX): Net export refers to the additional value of export over the imports. It can be calculated by subtracting the imports from exports.

Net capital outflow (NCO): Net capital outflow refers to the purchase of foreign assets by the domestic residents minus the purchase of domestic assets by foreign peoples.

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Students have asked these similar questions

Studies indicate that net exports and net capital outflows tend to be equal. 1. Explain why net exports and net capital outflows always tend to be equal. 2. Explain how a change in interest rates can lead to changes in net exports?

would each of the following transactions be included in net exports or net capital outflow? Please also tell whether it would represent an increase or a decrease in that variable. i. A Pakistani buys a Sony TV. ii. A Pakistani buys a share of Sony stock. iii. The Sony pension fund buys a bond from Pakistani Treasury. iv. A worker at a Sony plant in Japan buys some mango from a Pakistani farmer.

Would each of the following transactions be included in U.S. net exports or in U.S. Net capital outflow? An American buys a Sony TV.b.An American buys a share of Sony stock.c.The Sony pension fund buys a bond from the U.S. Treasuryd.A worker at a Sony plant in Japan buys some Georgia peaches form an American farmer.

Answer 2

Question

Chapter 31, Problem 1QR

To determine

Define net export and net capital outflow.

Expert Solution & Answer

Explanation of Solution

The net export is the difference between the value of a country’s export and the value of a country’s import. It is also known as trade balance. The net capital outflow is the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.

The net export and net capital outflow are related to each other. That is, for an economy, net capital outflow must always be equal to the net export. Symbolically, it can be shown as NCO=NX.

Economics Concept Introduction

Concept introduction:

Net export (NX): Net export refers to the additional value of export over the imports. It can be calculated by subtracting the imports from exports.

Net capital outflow (NCO): Net capital outflow refers to the purchase of foreign assets by the domestic residents minus the purchase of domestic assets by foreign peoples.

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Answer 3

Question

Chapter 31, Problem 1QR

To determine

Define net export and net capital outflow.

Expert Solution & Answer

Explanation of Solution

The net export is the difference between the value of a country’s export and the value of a country’s import. It is also known as trade balance. The net capital outflow is the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.

The net export and net capital outflow are related to each other. That is, for an economy, net capital outflow must always be equal to the net export. Symbolically, it can be shown as NCO=NX.

Economics Concept Introduction

Concept introduction:

Net export (NX): Net export refers to the additional value of export over the imports. It can be calculated by subtracting the imports from exports.

Net capital outflow (NCO): Net capital outflow refers to the purchase of foreign assets by the domestic residents minus the purchase of domestic assets by foreign peoples.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 31, Problem 1QR

To determine

Define net export and net capital outflow.

Expert Solution & Answer

Explanation of Solution

The net export is the difference between the value of a country’s export and the value of a country’s import. It is also known as trade balance. The net capital outflow is the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.

The net export and net capital outflow are related to each other. That is, for an economy, net capital outflow must always be equal to the net export. Symbolically, it can be shown as NCO=NX.

Economics Concept Introduction

Concept introduction:

Net export (NX): Net export refers to the additional value of export over the imports. It can be calculated by subtracting the imports from exports.

Net capital outflow (NCO): Net capital outflow refers to the purchase of foreign assets by the domestic residents minus the purchase of domestic assets by foreign peoples.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 31, Problem 1QR

To determine

Define net export and net capital outflow.

Expert Solution & Answer

Explanation of Solution

The net export is the difference between the value of a country’s export and the value of a country’s import. It is also known as trade balance. The net capital outflow is the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.

The net export and net capital outflow are related to each other. That is, for an economy, net capital outflow must always be equal to the net export. Symbolically, it can be shown as NCO=NX.

Economics Concept Introduction

Concept introduction:

Net export (NX): Net export refers to the additional value of export over the imports. It can be calculated by subtracting the imports from exports.

Net capital outflow (NCO): Net capital outflow refers to the purchase of foreign assets by the domestic residents minus the purchase of domestic assets by foreign peoples.

Answer 6

Chapter 31, Problem 1QR

To determine

Define net export and net capital outflow.

Expert Solution & Answer

Explanation of Solution

The net export is the difference between the value of a country’s export and the value of a country’s import. It is also known as trade balance. The net capital outflow is the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.

The net export and net capital outflow are related to each other. That is, for an economy, net capital outflow must always be equal to the net export. Symbolically, it can be shown as NCO=NX.

Economics Concept Introduction

Concept introduction:

Net export (NX): Net export refers to the additional value of export over the imports. It can be calculated by subtracting the imports from exports.

Net capital outflow (NCO): Net capital outflow refers to the purchase of foreign assets by the domestic residents minus the purchase of domestic assets by foreign peoples.

Answer 7

Chapter 31, Problem 1QR

To determine

Define net export and net capital outflow.

Answer 8

Expert Solution & Answer

Explanation of Solution

The net export is the difference between the value of a country’s export and the value of a country’s import. It is also known as trade balance. The net capital outflow is the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.

The net export and net capital outflow are related to each other. That is, for an economy, net capital outflow must always be equal to the net export. Symbolically, it can be shown as NCO=NX.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Net export (NX): Net export refers to the additional value of export over the imports. It can be calculated by subtracting the imports from exports.

Net capital outflow (NCO): Net capital outflow refers to the purchase of foreign assets by the domestic residents minus the purchase of domestic assets by foreign peoples.

Answer 12

Ch. 31.1 - Prob. 1QQ Ch. 31.2 - Prob. 2QQ Ch. 31.3 - Prob. 3QQ Ch. 31 - Prob. 1QR Ch. 31 - Prob. 2QR Ch. 31 - Prob. 3QR Ch. 31 - Prob. 4QR Ch. 31 - Prob. 5QR Ch. 31 - Prob. 1QCMC Ch. 31 - Prob. 2QCMC

Define net export and net capital outflow.

Solution Summary: The author explains the difference between net export and net capital outflow. Net export refers to the additional value of export over the imports.

Define net export and net capital outflow.

Explanation of Solution

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Chapter 31 Solutions