Chapter 23: Q. 5 (page 575)
At one point Canada’s GDP was \(1,800 billion and its exports were \)542 billion. What was Canada’s export ratio at this time?
30.1%
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The United States exports 14% of GDP while Germany exports about 50% of its GDP. Explain what that means.
If a country is running a government budget surplus, why is (T – G) on the left side of the saving-investment identity?
In what way does comparing a country’s exports to GDP reflect its degree of globalization?
In 2001, the United Kingdom's economy exported goods worth £192 billion and services worth another £77 billion. It imported goods worth £225 billion and services worth £66 billion. Receipts of income from abroad were £140 billion while income payments going abroad were £131 billion. Government transfers from the United Kingdom to the rest of the world were £23 billion, while various U.K government agencies received payments of £16 billion from the rest of the world.
a. Calculate the U.K. merchandise trade deficit for 2001.
b. Calculate the current account balance for 2001.
c. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
If imports exceed exports, is it a trade deficit or a
trade surplus? What about if exports exceed imports?
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