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3 . South Africa has decided to increase purchases from its trading partner, Botswana. ( a ) What effect will this have on South Africa's
South Africa has decided to increase purchases from its trading partner, Botswana. a What effect will this have on South Africa's GDP pt Explain. pt b Will South Africa's capital or financial account have a deficit, a surplus, or remain the same? pt Explain pts c To offset the effect on the value of the South African Rand from part a will South Africa's Central Bank buy or sell Rands in the foreign exchange market? pt Bonus: An Australian company builds a $ million factory in India. The currency in Australia is the dollar and the currency in India is the rupee. a How will the transaction above affect Australias current account balance?
South Africa has decided to increase purchases from its trading partner, Botswana.
a What effect will this have on South Africa's GDP pt Explain. pt
b Will South Africa's capital or financial account have a deficit, a surplus, or remain the same? pt Explain pts
c To offset the effect on the value of the South African Rand from part a will South Africa's Central Bank buy or sell Rands in the foreign exchange market? pt
Bonus:
An Australian company builds a $ million factory in India. The currency in Australia is the dollar and the currency in India is the rupee.
a How will the transaction above affect Australias current account balance?
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