Question
Assume the value of exports of Philippines is 1 billion $, also assume citizens of Philippines working outside of Philippines are sending 1 billion $
Assume the value of exports of Philippines is 1 billion $, also assume citizens of Philippines working outside of Philippines are sending 1 billion $ to the Philippines, while the foreigners working in the Philippines sending 0.5 billion $. Also, assume foreigners in the Philippines own several factories, and natural resources in the Philippines, the value of all natural resources and factories owned is 200 billion $, and 1.5 billion $ flows out of the Philippines as the revenue as profit earned by foreign companies that are owning natural resources and factories in the Philippines. Also assume none of the companies owned by citizens of the Philippines, own natural resources or factory in any foreign country. Assume the Philippines has 2 billion $ current account deficit. Answer the questions accordingly. What is the value of imports of the Philippines? Change two variables within the current account in a way so that current account deficit will be closed. Show also matematically that with the new values Phillipinnes will have zero deficit.
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