Handout 4 - Econ 3140 Fall 2009 Handout #4 1. Suppose a...

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Econ 3140 Fall 2009 Handout #4 1. Suppose a country has the following balance of payments data. Exports of goods 100 Imports of goods 130 Service exports 60 Service imports 50 Income payments from abroad 75 Income payments to foreigners 115 Increase in home country assets abroad 130 Increase in foreign assets in home country 190 (a) Calculate net factor payments from abroad. (b) Calculate the current account balance. (d) Calculate the trade balance. 2. For each of the following transactions, explain what happens to the merchandise trade the United States and Mexico. The exchange rate is 2 Mexican pesos per U.S. dollar. 4 million pesos to buy radiology equipment from a U.S. 20 ; 000 sombreros at 20 pesos each.
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This note was uploaded on 10/10/2009 for the course ECON 3140 at Cornell University (Engineering School).

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Handout 4 - Econ 3140 Fall 2009 Handout #4 1. Suppose a...

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