Net Exports & Net Capital Outflow

Juan lives in Ecuador and purchases a motorcycle manufactured in the United States. The motorcycle is _____.

• both a U.S. and Ecuadorian export.

• both a U.S. and Ecuadorian import.

• a U.S. import and an Ecuadorian export.

• a U.S. export and an Ecuadorian import.

If U.S. exports total $100 billion and U.S. imports total $150 billion, which of the following is correct?

• The U.S. has a trade surplus of $100 billion.

• The U.S. has a trade surplus of $50 billion.

• The U.S. has a trade deficit of $100 billion.

• The U.S. has a trade deficit of $50 billion.

The value of Peru's exports minus the value of Peru's imports is called _____.

• Peru's foreign portfolio investment.

• Peru's foreign direct investment.

• Peru's net exports.

• Peru's net imports.

Sonya, a citizen of Denmark, produces boots and shoes that she sells to department stores in the United States. Other things the same, these sales _____.

• increase U.S. net exports and have no effect on Danish net exports.

• decrease U.S. net exports and have no effect on Danish net exports.

• increase U.S. net exports and decrease Danish net exports.

• decrease U.S. net exports and increase Danish net exports.

A firm in China sells jackets to a U.S. department store chain. Other things the same, these sales _____.

• increase U.S. and Chinese net exports.

• decrease U.S. and Chinese net exports.

• increase U.S. net exports and decrease Chinese net exports.

• decrease U.S. net exports and increase Chinese net exports.

Ivan, a Russian citizen, sells several hundred cases of caviar to a restaurant chain in the United States. By itself, this sale _____.

• increases U.S. net exports and has no effect on Russian net exports.

• increases U.S. net exports and decreases Russian net exports.

• decreases U.S. net exports and has no effect on Russian net exports.

• decreases U.S. net exports and increases Russian net exports.

Suppose a country had $2.4 billion of net exports and bought $4.8 billion of goods and services from foreign countries. This country would have _____.

• $7.2 billion of exports and $4.8 billion of imports

• $7.2 billion of imports and $4.8 billion of exports

• $4.8 billion of exports and $2.4 billion of imports

• $4.8 billion of imports and $2.4 billion of exports

Suppose a country had net exports of $8.3 billion and sold $52.4 billion of goods and services abroad. This country had

• $60.7 billion of imports and $52.4 billion of imports.

• $60.7 billion of exports and $52.4 of imports.

• $52.4 billion of imports and $44.1 billion of exports.

• $52.4 billion of exports and $44.1 billion of imports.

Mike, a U.S. citizen, buys $1,000 worth of cheese from France. His action alone

• increases U.S. imports by $1,000 and increases U.S. net exports by $1,000.

• increases U.S. imports by $1,000 and decreases U.S. net exports by $1,000.

• increases U.S. exports by $1,000 and increases U.S net exports by $1,000.

• increases U.S. exports by $1,000 and decreases U.S net exports by $1,000.

A German company sells cameras to a retailer in the United States. These sales by themselves

• decrease U.S. net exports and increase German net exports.

• increase U.S. net exports and increase German net exports.

• decrease U.S. and German net exports.

• increase U.S net exports and decrease German net exports.