Asked by Debbie Annang on Jul 11, 2024
Verified
A U.S. firm called EcoWind produces windmills for households to generate electricity. It uses 25,000 recently obtained pesos to buy copper from a mining company in Argentina. As a result of this exchange, by how much, if at all, and in which direction did:
A. U.S. net exports change?
B. U.S. net capital outflow change?
Net Capital Outflow
Disparity in investment activities, with locals buying assets internationally, in contrast to foreigners buying domestically.
Net Exports
The net amount obtained by subtracting a nation's total imports from its total exports.
- Analyze the factors influencing net exports and net capital outflow.
- Explain the impact of international transactions on a country's net exports.
- Determine the effect of currency exchanges and investment on net capital outflow.
Verified Answer
JM
Jessica Miranda ElizondoJul 17, 2024
Final Answer :
A. U.S. net exports fell by 25,000 pesos.
B. U.S. net capital outflow fell by 25,000 pesos.
B. U.S. net capital outflow fell by 25,000 pesos.
Learning Objectives
- Analyze the factors influencing net exports and net capital outflow.
- Explain the impact of international transactions on a country's net exports.
- Determine the effect of currency exchanges and investment on net capital outflow.