Trade Balances Economics

Apr 21st, 2015
Price: $5 USD

Question description

Table 12.4 U.S. International Transactions, 2006 ($ billions)

Current Account transactions

Exports of Merchandise  $1,023.1

Imports of Merchandise  −1,861.4

Balance of Trade (Goods)  −838.3

Exports of Services   422.6

Imports of Services  −342.8

Balance on Services  79.7

Balance on Goods & Service  −758.5

Income Receipts on U.S. Assets Abroad  650.5

Income Payments of Foreign Assets in the U.S.  −613.8

Balance on Investment Income  −36.6

Balance on Goods, Services, and Income  −721.9

Unilateral Transfers, Net  −89.6

Balance on Current Account  −811.5

Capital Account transactions, net   −3.9

Financial Account Transactions  −1,055.2

Change in U.S. Owned Assets Abroad

U.S. Official Reserve Assets  2.4

U.S. Government Assets, Other than Official Reserve  5.3

U.S. Private Assets  −1,062.9

Change in Foreign Owned Assets in the U.S.  1,859.6

Foreign Official Assets  440.3

Foreign Private Assets  1,419.3

Balance on Financial Account  804.4

Statistical Discrepancy  −17.8

Table 12.4 provides U.S. International Transactions for 2006.  The accounts are in balance in total even though there is a substantial deficit in the current account.  What does a deficit in the current account represent?  What accounts offset the deficit in the current account to bring the accounts into balance in total?  What do these accounts represent?  How does your explanation help you to interpret Figure 12.4?

Your 200 word answer should focus on selecting and organizing your most relevant comments in a coherent fashion.

Tutor Answer

(Top Tutor) Daniel C.
School: UCLA

Studypool has helped 1,244,100 students

Review from our student for this Answer

Apr 28th, 2015
"Excellent work as always thanks so much"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1829 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors