4. Net capltal outflow 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 financial markets. Although it can often result in an imbalance in these markets, the following identity must remain true: Net Capital Out flow Net Exports In other words, if a transaction directly affects the left side of this equation, then must also affect the right side. The following it problem will help you understand why this identity must hold. Suppose you are the purchasing manager for a large chain of restaurants in tea. You pay $1,500,000 for a shipment of tea from an Indian tea producer. e United States, and you need to make your semiannual purchase of the Determine the effects of this transaction on exports, imports, and net exports in the U.S economy, and enter your resuits in the following table. Ir 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