4. Net capital outow and not export; An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world nancial markets. Although it can often result in an imbalance in these markets, the following identity must remain true: Not Capital Outow = Not Exports In other words, if a transaction directly affects the left side of this equation, then it must also affect the right side. The following problem will help you understand why this identity must hold. Suppose you are a fashion designer living in lCanada, and a trendy bouque in Bangkok just purchased your entire inventory for THE 90,000. Determine the effects of this transaction on exports, imports, and net exports in the Canadian economy, and enter your resuits in the foiiowing table. If the direction of change is "No change, " enter "0" in the Magnitude of Change cofumn. Hint: The magnitude of change should always be positive, regardless of the direction of change. Magnitude of Change Direction of Change (Baht) 5...... _. E ........... _. E N... 3...... _. E Because of the idenb'ty equation that relates to net exports, the v in Canadian net exports is matched by v in Canadian net capital outow. Which of the following is an example of how Canada might be affected in this scenario? Check ail that apply. [:1 You purchase THB 54,000 worth of stock in a Thai corporation and THE 36,000 worth of Thai bonds. C] You store the Thai baht in your safety deposit box at home. C] You exchange the THB 90,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation. 4. Net capital outow and net exports An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world nancial markets. Although it can often result in an imbalance in these markets, the following identity must remain true: Net Capital Outow = Net Experts- In other words, if a transaction directly affects the left side of this equation, then it must also affect the right side. The following problem will help you understand why this identity must hold. Suppose you are a fashion designer living in Canada, and a trendy bouque in Bangkok just purchased your entire inventory for THE 90,000. Determine the effects of this transaction on exports, imports, and net exports in the Canadian economy, and enter your results in the following table. If the direction of change ls "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 Direction of Change (Baht) Exports _v E Imporls Net Exports Because of the idenl at relates to net exports, the V in Canadian net exports is matched by V in Canadian [:1 You purchase THB 54,000 worth ofstock in a Thai corporation and THE 36,000 worth of'lhai bonds. net capital outow. llowing is an example of how Canada might be affected in this scenario? Check all that apply. C] You store the Thai baht in your safety deposit box at home. C] You exchange the THB 90,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporaon. 4. Net capital outow and net exports An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world nancial markets. Although it can often result in an imbalance in these markets, the following identity must remain true: Net Capital Outow = Net Exports In other words, if a transaction directly affects the left side of this equation, then it must also affect the right side. The following problem will help you understand why this identity must hold. Suppose you are a fashion designer living in Canada. and a trendy boub'que in Bangkok just purchased your entire inlientor'yr for THE 90,000. Determine the effects of this transacon on exports, imports, and net exports in the Canadian 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 positiyer regardless of the direction of change. Magnitude of Change Direction of Change (Baht) 5...... _v E mar-s _v E Net Exports Because of the idenl at relates to net exports, the V in Canadian net exports is matched by V in Canadian net capital outow. Illowing is an example of how Canada might be affected in this scenario? Check all that apply. 0 c ange C] You purchase THB 54,000 worth of stock in a Thai corporation and THE 36,000 worth of Thai bonds. C] You store the Thai baht in your safety deposit box at home. C] You exchange the THB 90,000 for dollars at your local bank. which then uses the foreign cunency to purchase stock in a Thai corporation. 4. Net capital outow and net exports An open economy interacts with the rest of the worid through its involvement in world markets for goods and services and world nancial markets. Although it can often result in an imbalance in these markets. the following identity must remain true: Net Capital Outow = Net Exports In other words. if a transaction directly affects the left side of this equation, then it must also affect the right side. The following problem will help you understand why this identity must hold. Suppose you are a fashion designer living in Canada, and a trendy boutique in Bangkok just purchased your entire inventory for THE 90,000. Determine the effects of this transac'b'on on exports, imports, and net exports in the Canadian economy, and enter your resuits in the foiiowing 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 Direction of Change (Baht) Exports _. E mm _v E mm mm _v E Because of the Men: at relates to net exports, the V in Canadian net exports is matched by V in Canadian net capital outow. Illowing is an example of how Canada might be affected in this scenario? Check all that apply. C] You purch. I0 worth of stock in a Thai corporation and THE 36.000 worth of Thai bonds. C] You store the Thai baht in your safety deposit box at home. [:1 You exchange the THB 90,000 for dollars at your local bank. which then uses the foreign cunency to purchase stock in a Thai corporation. 4. Net capital outow and net exports An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world nancial markets. Although it can often result in an imbalance in these markets, the following identity must remain true: Net Capital Outow = Net Exports In other words, if a transaction directly affects the left side of this equation, then it must also affect the right side. The following problem will help you understand why this identity must hold. Suppose you are a fashion designer living in Canada, and a trendy boutiques in Bangkok just purchased your entire inventory for THE 90,000. Determine the effects of this transaction on exports, imports, and net exports in the Canadian economy, and enter your resuits in the foiiowing 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 Direction oi Change (Baht) 3...... _v E .......... _. E ..... 3...... _.. E Because of the identity equation that relates to net exports, the V in Canadian net exports is matched by v in Canadian ht be affected in this scenario? Check ail that apply. net capital outow. Which of the following is an example of how C] You purchase THB 54,000 worth ofstock in a Thai co I THE 35,000 worth ofThai bonds. decrea se [:1 You store the Thai baht in your safety deposit box at home. C] You exchange the THB 90,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation. 4. Net capital outow and net exports An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world nancial markets. Although it can often result in an imbalance in these marketsr the following identity must remain true: Net Capital Outow = Net Exports In other words, if a transaction directly affects the left side of this equation, then it must also affect the right side. The Following problem will help you understand why this identity must hold. Suppose you are a fashion designer living in Canada. and a trendy bouque in Bangkok just purchased your entire inventory for THE 90y000. Determine the effects of this transacon on exports, imports, anor net exports in the Canadian 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 Direction of Change (Baht) 3...... _. E muons _v E ... mans _v E Because of the identity equation that relates to net exports, the V in Canadian net exports is matched by V in Canadian an increase net capital outow. which of the following is an example of how Canada might be affected in this scenario? Check all t C] You purchase THB 54.000 worth of stock in a Thai corporation and THE 36.000 worth ofThai bonds. a decrease C] You store the Thai baht in your safety deposit box at home. C] You exchange the THB 90,000 for dollars at your local bank. which then uses the foreign currency to purchase stock in a Thai corporation