Suppose you are a fashion designer living in the United States, and a trendy boutique in...

 

Transcribed Image Text:

Suppose you are a fashion designer living in the United States, and a trendy boutique in Bangkok just purchased your entire inventory for THB 70,000. Determine the effects of this transaction on exports, imports, and net exports in the U.S. economy, and enter your results in the following table. If the direction of change is "No change," enter "0" in the Magnitude of Change column. Hint: The magnitude of change should always be positive, regardless of the direction of change. Magnitude of Change (Baht) Direction of Change Exports Imports Net Exports in U.S. net capital Because of the identity equation that relates to net exports, the in U.S. net exports is matched by outflow. Which of the following is an example of how the United States might be affected in this scenario? Check all that apply. You purchase THB 42,000 worth of stock in a Thai corporation and THB 28,000 worth of Thai bonds. You store the Thai baht in your safety deposit box at home. You exchange the THB 70,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation. Suppose you are a fashion designer living in the United States, and a trendy boutique in Bangkok just purchased your entire inventory for THB 70,000. Determine the effects of this transaction on exports, imports, and net exports in the U.S. economy, and enter your results in the following table. If the direction of change is "No change," enter "0" in the Magnitude of Change column. Hint: The magnitude of change should always be positive, regardless of the direction of change. Magnitude of Change (Baht) Direction of Change Exports Imports Net Exports in U.S. net capital Because of the identity equation that relates to net exports, the in U.S. net exports is matched by outflow. Which of the following is an example of how the United States might be affected in this scenario? Check all that apply. You purchase THB 42,000 worth of stock in a Thai corporation and THB 28,000 worth of Thai bonds. You store the Thai baht in your safety deposit box at home. You exchange the THB 70,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation.

Answer rating: 100% (QA)

Magnitude of Change Direction of Change Baht 70000 Exports Increase Imports No Change 0 Net Exports ... View the full answer