TUTORIAL QUESTIONS

1. Below are the international trade terms for Country Z

Tourism expenditure by foreigners

Receipts from insurance and banking

100 2

800

Payment for freight services

96.5

710

Scholarship to students at overseas

Corporate investment by foreigners Income from overseas investment

Visible export

1700

483

100.0

1113

Visible import

Short term investment by foreigners

Private investment at overseas

Errors and omissions

1504

14.5

Calculate the

a Services balance

b. Current account balance

c Capital account balance

d. Basic balance

e. Overall balance