Ch 5 Global Trade [AP & Reg]


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Unformatted text preview: rought home our 40,000 troops in South Korea, this would contribute to a U.S. balance of payments (surplus/deficit). 44. U.S. tourists traveling in large numbers to Europe would contribute to a U.S. balance of payments (surplus/deficit). 45. The U.S. balance of payments show the balance between (all/some of) the payments the U.S. receives from foreign countries and (all/some of) the payments which we make to them. 46. If a nation’s merchandise exports are $60 billion, while its merchandise imports are $70 billion, this nation is experiencing a balance of trade (surplus/deficit) of $10 billion. 47. The (current/capital) account includes trade in currently produced goods/services [X­M]. 48. The (current/capital) account reflects flows of real [land, factories, etc.] and financial assets [securities]. 49. There (must/must not) always be a balance of a nation’s total international payments . [includes “official reserves”] 50. A deficit on the current account tends to cause a (deficit/surplus) on the capital account. “I have a comparative advantage.” Review...
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This note was uploaded on 07/20/2012 for the course ECON 2106 at GCSU.

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