For the country selected in additional problem 4, analyze the exchange rate against the dollar during the same period.

a. Is there any observable relationship between the BOP accounts and the exchange rate?

b. Provide a possible explanation for your observations in (a) above.

Data from in problem 4

Select a country and undertake an analysis of that country’s BOP for 8 to 12 years, subject to availability of data. The analysis must include examinations (presentation of statistical data with discussion) of the trade balance, current‑account balance, capital‑account balance, basic balance, and overall balance.