Macro Economics

HTW Berlin - Ülkü

HTW Berlin - Ülkü


Kartei Details

Karten 50
Sprache English
Kategorie VWL
Stufe Universität
Erstellt / Aktualisiert 04.03.2016 / 28.03.2016
Weblink
https://card2brain.ch/box/macro_economics
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Variables that influences net exports

Trade deficit

an exess of imports over exports

Trade surplus

an excess of exports over imports

Balanced trade

when exports equals imports

Net capital outflow (NCO)

domestic residents' purchases of foreign assets - foreigners' purchases of domestic assets

Foreign direct investment

Domestic residents actively manage the foreign investment. e.g. McDonalds opens a fast-food outlet in Moscow

Foreign portfolio investment

Domestic residents purchase foreign stocks or bonds, supplying "loanable funds"to a foreign firm

When NCO > 0

Capital outflow - Domestic purchases of foreign assets exceed foreign purchases of domestic assets

When NCO < 0

Capital inflow -- Foreign purchases of domestic assets exceed domestic purchases of foreign assets.

Variables that influence NCO