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Suppose the following transactions occur during 2018. 1. Waddah, a liquor store owner in the United States, buys 80 bottles of wine from a French vineyard at a price of $30 per bottle. 2. Autozone, a U.S. company, sells 200 spark plugs to a South Korean car company at $3.50 per spark plug. 3. Taylor, a U.S. citizen, pays $350 for a snowboard he orders from Arrieta White Mountain Supplies (a U.S. company). Based on these transactions, U.S. net exports (NX) in 2018 is $ ____ . [Note: If your answer is negative don't forget to enter a minus sign]

Sagot :

Parrain

Answer: -$1,700

Explanation:

The Net exports are to be calculated by deducting imports into the U.S. from Exports to other countries from the U.S.

Exports:

2. Autozone, a U.S. company, sells 200 spark plugs to a South Korean car company at $3.50 per spark plug.

Imports

1. Waddah, a liquor store owner in the United States, buys 80 bottles of wine from a French vineyard at a price of $30 per bottle.

= Exports - Imports

= (200 * 3.50) - [80 * 30]

= -$1,700

The third transaction is neither an import nor an export as it was conducted entirely in the U.S.

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