YOU BELEIVE IN THIS PROJECT!
Donate it and you'll support us.
https://streamlabs.com/economicscourse

You still have doubts. Book a private online lesson.
https://cafetalk.com/tutor/profile/?i...

Chapter 31. Exercises 1-5. Open-Macroeconomics: Basic concepts.

1. How would the following transactions affect U.S. exports, imports, and net exports?
a. An American art professor spends the summer touring museums in Europe.
b. Students in Paris flock to see the latest movie from Hollywood.
c. Your uncle buys a new Volvo.
d. The student bookstore at Oxford University in England sells a copy of this textbook.
e. A Canadian citizen shops at a store in northern Vermont to avoid Canadian sales taxes.
2. Would each of the following transactions be included in net exports or net capital outflow? Be sure to say whether it would represent an increase or a decrease in that variable.
a. 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. Treasury.
d. A worker at a Sony plant in Japan buys some Georgia peaches from an American farmer.
3. Describe the difference between foreign direct investment and foreign portfolio investment. Who is more likely to engage in foreign direct investment—a corporation or an individual investor? Who is more likely to engage in foreign portfolio investment?
4. How would the following transactions affect U.S. net capital outflow? Also, state whether each involves direct investment or portfolio investment.
a. An American cellular phone company establishes an office in the Czech Republic.
b. Harrods of London sells stock to the General Electric pension fund.