Connect with knowledgeable individuals and find the best answers at IDNLearn.com. Get accurate and comprehensive answers to your questions from our community of knowledgeable professionals.

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 :

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.

Thank you for using this platform to share and learn. Don't hesitate to keep asking and answering. We value every contribution you make. For clear and precise answers, choose IDNLearn.com. Thanks for stopping by, and come back soon for more valuable insights.