1. Consider the following scenario in the hypothetical country of Zootopia: The government budget deficit is $80 billion, total domestic savings amount to $1,200 billion, and total domestic physical capital investment is $1,300 billion. According to the national saving and investment identity, what will be the current trade balance? Additionally, suppose investment increases by $30 billion while the budget deficit and national savings remain unchanged. What will be the new current trade balance?
2. Explain briefly whether each of the following would be more likely to lead to a higher level of trade for an economy, or a greater imbalance of trade for an economy.

• Living in an especially large country
• Having a domestic investment rate much higher than the domestic savings rate
• Having many other large economies geographically nearby
• Having an especially large budget deficit
• Having countries with a tradition of strong protectionist legislation shutting out imports

1. Conduct research to gather information on trade surpluses and trade deficits. Utilize reliable sources such as academic journals, economic publications, government reports, and reputable news outlets to acquire relevant data and insights.
2. Advantages of Trade Surplus: Identify and explain one advantage of running a trade surplus. Discuss how a trade surplus can benefit a country's economy, industries, and overall well-being.
3. Disadvantages of Trade Surplus: Identify and explain one disadvantage of running a trade surplus. Discuss the potential challenges or drawbacks associated with maintaining a trade surplus.
4. Advantages of Trade Deficit: Identify and explain one advantage of running a trade deficit. Discuss how a trade deficit can positively affect a country's economy and other relevant aspects.
5. Disadvantages of Trade Deficit: Identify and explain one disadvantage of running a trade deficit. Discuss the potential negative consequences or challenges a trade deficit may bring to a country's economy.
6. Mitigating Measures for Trade Deficit or Surplus: Propose a policy measure that a country could implement to minimize or mitigate the mentioned advantage or disadvantage of running a trade deficit or surplus (pick only one case you discussed in points 1 through 4). Explain how this policy measure can address the challenges and promote a more balanced trade environment. Justify your proposal using sound economic reasoning and supporting evidence.