A US Firm Called EcoWind Produces Windmills for Households to Generate

question 155

Essay

A U.S. firm called EcoWind produces windmills for households to generate electricity. It uses 25,000 recently obtained pesos to buy copper from a mining company in Argentina. As a result of this exchange, by how much, if at all, and in which direction did:
A. U.S. net exports change?
B. U.S. net capital outflow change?

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Definitions:

Competitive Markets

Markets where there are many buyers and sellers, ensuring no single entity can dictate prices or market conditions.

Supply And Demand

The fundamental economic model that determines the price of goods and services in a market, based on the quantity available (supply) and the desire for them (demand).

MRP

Material Requirements Planning is a system for calculating the materials and components needed to manufacture a product.

Productivity

The measure of how efficiently inputs are converted into outputs in a production process.