Question

In: Economics

Describe how the following transactions would affect U.S. exports, imports, and net exports: Students in Prague...

Describe how the following transactions would affect U.S. exports, imports, and net exports: Students in Prague flock to see the latest movie from Hollywood. Mrs. Jones in Philadelphia buys a new Volvo. The student bookstore at Oxford University in England sells a copy of a U.S. printed/authored textbook A Canadian citizen shops at a store in northern Vermont to avoid Canadian sales taxes. An American art professor spends the summer touring museums in Europe. Please do not copy one of the answers already posted here on chegg, and please make each answer one paragraph long. thank you and I will rate well!

Solutions

Expert Solution

Net exports = Export - Imports

(1) Students in Prague flock to see the latest movie from Hollywood:

Dutch students travel to US to consume US-made movies. This is an export of services from US perspective, which will increase exports. Imports remaining unchanged, this will increase net exports.

(2) Mrs. Jones in Philadelphia buys a new Volvo:

A US resident purchasing a Swedish made (Volvo) car is an import of a good from US perspective, which will increase imports. Exports remaining unchanged, this will decrease net exports.

(3) Student bookstore at Oxford University in England sells a copy of a U.S. printed/authored textbook:

Sale of US-made book in England is an export of goods from US perspective, which will increase exports. Imports remaining unchanged, this will increase net exports.

(4) Canadian citizen shops at a store in northern Vermont to avoid Canadian sales taxes:

Sale of US-made good to a Canadian is an export of goods from US perspective, which will increase exports. Imports remaining unchanged, this will increase net exports.

(5) An American art professor spends the summer touring museums in Europe:

A US resident purchasing tourism services in Europe is an import of services from US perspective, which will increase imports. Exports remaining unchanged, this will decrease net exports.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Describe how the following transactions would affect U.S. exports, imports, and net exports: Students in Prague...
Describe how the following transactions would affect U.S. exports, imports, and net exports: Students in Prague flock to see the latest movie from Hollywood. Mrs. Jones in Philadelphia buys a new Volvo. The student bookstore at Oxford University in England sells a copy of a U.S. printed/authored textbook A Canadian citizen shops at a store in northern Vermont to avoid Canadian sales taxes. An American art professor spends the summer touring museums in Europe.
Describe how the following transactions would affect U.S. exports, imports, and net exports: Students in Prague...
Describe how the following transactions would affect U.S. exports, imports, and net exports: Students in Prague flock to see the latest movie from Hollywood. Mrs. Jones in Philadelphia buys a new Volvo. The student bookstore at Oxford University in England sells a copy of a U.S. printed/authored textbook A Canadian citizen shops at a store in northern Vermont to avoid Canadian sales taxes. An American art professor spends the summer touring museums in Europe.
Explain how net exports affect the U.S. economy. Describe both negative and positive impacts on GDP....
Explain how net exports affect the U.S. economy. Describe both negative and positive impacts on GDP. Why do national income accountants use net exports to compare GDP, rather than simply adding exports to the other expenditure components of GDP?
What are Net Exports? Would increase in foreign students coming to the U.S. on student visa...
What are Net Exports? Would increase in foreign students coming to the U.S. on student visa be considered our imports or exports and why?
5. Which of the following factors affects a country's exports, imports, and net exports? (x) international...
5. Which of the following factors affects a country's exports, imports, and net exports? (x) international trade policy (y) consumer tastes at home and abroad (z) prices of domestic and foreign goods A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (x) only 6. Suppose the value of the goods and services that Australia purchases from the U.S. are less than the value of goods and services that...
Chocolate De-lites imports and exports chocolate delicacies. Some transactions are denominated in U.S. dollars and others...
Chocolate De-lites imports and exports chocolate delicacies. Some transactions are denominated in U.S. dollars and others in foreign currencies. A summary of accounts receivable and accounts payable on December 31, 20X6, before adjustments for the effects of changes in exchange rates during 20X6, follows:      Accounts receivable:       In U.S. dollars $ 164,000       In 475,000 Egyptian pounds (E£) $ 73,600   Accounts payable:       In U.S. dollars $ 86,000       In 21,000,000 yen (¥) $ 175,300   The spot rates on December 31, 20X6, were...
Describe how the following transactions of McDonald’s Corp. (MCD), would affect the three elements of the...
Describe how the following transactions of McDonald’s Corp. (MCD), would affect the three elements of the accounting equation. a. Paid research and development expenses for the current year. b. Purchased machinery and equipment for cash. c. Received cash from issuing stock. d. Received cash from the issuance of long-term debt. e. Made cash sales. f.   Paid selling expenses. g. Paid employee pension expenses for the current year. h. Received cash from selling manufacturing equipment for a gain on the sale....
A microeconomist would focus their studies on levels of exports and imports.
A microeconomist would focus their studies on levels of exports and imports. Select the correct answer below:  True False 
4. How would the following transactions affect your country's net capital outflow? Also, state whether each...
4. How would the following transactions affect your country's net capital outflow? Also, state whether each involves direct investment or portfolio investment. a. A local mobile phone company establishes an office in the Czech Republic. b. Harrod's of London sells shares to a pension fund in your country. c. The Swedish car company, Volvo, expands its factory in your country. d. A local mutual fund sells its Volkswagen shares to a French investor. 10. A can of iced tea costs...
Consider the factors that affect the net exports and the net capital outflow and discuss why...
Consider the factors that affect the net exports and the net capital outflow and discuss why these two magnitudes are equal. If you consider that Turkey, has a low savings rate, which variable is to change and how would this affect the nominal and real exchange rates?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT