Given Below Are the Current Account Transactions of an Economy

question 75

Essay

Given below are the current account transactions of an economy in a year:
i)Exported goods and services worth $120 billion
ii)Imported goods worth $200 billion
iii)Revenue earned from manufacturing plants situated abroad worth $80 billion
iv)Dividend paid to foreign investors worth $10 billion
v)Donations and disaster relief funds given to a foreign country worth $10 billion
vi)"Gifts" received from foreign donors toward poverty alleviation worth $5 billion
a)Calculate the economy's trade balance.
b)What will be the balance in the economy's current account?

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Definitions:

Agricultural Corporations

are companies engaged in the business of agriculture, which may include farming, raising livestock, and producing agricultural products.

Post-Effective Period

A timeframe following the official effectiveness of a legal document or regulation during which certain provisions or requirements come into effect.

Pre-Filing Period

The phase before official documents or applications are formally submitted or filed, often involving preparation and review.

Waiting Period

A designated amount of time that must pass before an action can take effect or certain rights can be exercised.