Term
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Definition
| value of country's exports - value of country's imports |
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Term
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Definition
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Term
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Definition
| an excess of exports over imports |
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Term
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Definition
| when a country's exports are less than imports |
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Term
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Definition
| when a country's eports equals its exports |
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Term
| Factors that influence exports, imports and net exports |
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Definition
1. The tastes of consumers for domestic and foreign goods
2.The price of goods at home and abroad
3.the exchange rates at which people can use domestic currency to buy foreign currencies
4. the incomes of consumers at home and abroad
5. the cost of transporting goods from country to country
6. Government policies toward international trade |
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Term
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Definition
| the percentage of deposits a bank chooses to hold as reserves. |
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Term
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Definition
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Term
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Definition
1. Consume more than we are able to produce
2. Specialization |
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Term
| Q: If Canada has a recession what would happen to our Net Exports |
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Definition
Our net Exports will decrease because exports decrease
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Term
| Q: If people in America buy all american goods what happens to net exports |
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Definition
| Net exports will increase because imports decrease |
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Term
Q: If Mexican goods rise faster than prices in the U.S.
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Definition
| A: Net exports increase because exports increase and imports decrease. |
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Term
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Definition
| Purchase of foreign assets by domestic residents - purchase of domestic assets by foreigners |
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Term
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Definition
| Something that holds their value well. |
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Term
| If purchases of foreign assets by domestic residents is greater than purchase of domestic assets by foreigners |
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Definition
capital is flowing out of the country
Vice versa |
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Term
| Factors that influence NCO |
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Definition
1. Percieved risk, political risk
2. Real return on foreign assets
3. real return on domestic assets
4. Gov't policies that affect foreign ownership |
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Term
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Definition
Savings = domestic investments + Net Capital outflow
NCO = NX
S = I + NX
S = I + NCO |
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Term
| What can you use your dollar for |
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Definition
Finance accumulation of domestic capital
or
Finance the purchase of foreign capital |
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Term
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Definition
| NCO is + and excess of loanable funds that flow abroad in the form of positive net capital |
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Term
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Definition
| NCO is - and foreigners are financing some of our country's investments |
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