Macro Economics
HTW Berlin - Ülkü
HTW Berlin - Ülkü
Set of flashcards Details
| Flashcards | 50 |
|---|---|
| Language | English |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 04.03.2016 / 28.03.2016 |
| Weblink |
https://card2brain.ch/box/macro_economics
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| Embed |
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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
