1) the exports of goods and services minus the imports of goods and services; 2) the difference of incomes that countries pay to each other; and 3) the difference in transfers that countries make to each other. Current account deficits are reported with a minus sign and surpluses are reported with a plus sign. Although the current account has several components, its biggest component is the trade balance: the difference between exports and imports of goods and services. More detail is provided
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income of everyone in the economy and the total expenditure on the economy’s output of goods and services. 2. For the economy as a whole, Income=Expenditure (Every transaction has two parties: Buyer and Seller) 3. Definition of GDP (Gross Domestic Product): GDP is the market value of all final goods and services produced within a country in a given period of time. 4. Components of GDP (Y) : Consumption (C), Investment (I), Government purchases (G), Net exports (NX) Y = C + I + G + NX
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Revenue Budget • • Revenue Receipts Revenue Expenditure Surplus/Deficit Food Budget • Food Aid • Counterpart Fund • Food Import • VGD, FFW • Subsidy Surplus/Deficit Capital Budget • Receipts • Payments Surplus/Deficit Development Program + - • • Expenditure Receipts • • • • Revenue Surplus New Tax Measures Net Domestic Capital Extra Budgetary Resource • • Counterpart fund Net food aid • • • • Foreign Assistance Foreign Direct Investment
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levels will reduce the value of money * Inflation rate is measured every month * Inflation rate – measures the overall increase in price level in a given time period Tao – Bank – Company – Price 10 % wage vs. 0% inflation ↓Demand -↓Price-↑Demand Deflation in Japan 1990 Life Expectancy Saving vs. Spending Saving → Government 66 % Dependent 34 % 18-64 ↓Demand = ↓Price = ↓Q Supply = ↓ # of worker = ↑unemployment = ↑ Government Rely = ↓Interest Rate 0.000001% Iceland – 7 to 8 % Economy Collapsed Largest
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International Trade Jami Sieger July 11, 2016 5 Year Trade Balance Year | Exports | Imports | Trade Balance | 2011 | 104121.5 | 399371.2 | -295249.7 | 2012 | 110,516.6 | 425,619.1 | -315,102.5 | 2013 | 121,746.2 | 440,430 | -318,683.8 | 2014 | 123,620.7 | 468,483.9 | -344,863.2 | 2015 | 116,071.8 | 483,244.7 | -367,172.9 | | | | | | 5 Year Total - | -1641072.1 | Imports from China to the U.S. have outweighed the exports for a long time. The trade deficit continues
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Context of Business Economic Environment Factors of production: Resources used to produce goods and services 1) Land (natural resources) 2) Labor (workers) 3) Capital (buildings, equipment) 4) Entrepreneurship 5) Knowledge/Information World Economic Systems 1) Communism: All factors owned by all people * Big government * No competition * Karl Marx 2) Socialism: Some factors owned by all people * More equal allocation of resources * Government/central
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FINAL EXAM 1. Absolute and comparative advantage Comparative advantage is the relative opportunity cost of producing particular goods. Absolute advantage is the ability of a country to produce a specific good with fewer resources (per unit of output) that other countries. 2. Calculate unemployment rate Unemployment rate = # of unemployed people/labor force (only those actively seeking employment) 3. What happens when a bank makes a loan When a bank creates a loan
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Report On “FACTORING VS FORFEITING” Submitted by Payal Pasad A-22 Vaishali pise A-23 Rupalika Sarkar B-30 Asiya Shaikh B-32 For subject Banking and Insurance [pic] Aruna Manharlal Shah Institute of Management and Research Ghatkopar [W], Mumbai-86 2012-13 TABLE OF CONTENTS |Chapter 1 |FACTORING | | |1.1 |Overview: Factoring
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South Korea exports more goods, services, and income than it imports. (Data from world databank) The Current Account In October 2011, South Korea’s current account surplus US4000 Million. South Korea’s growing economy relies on exports, and the most important exports are form electronics industry such as television, semiconductors, LCD panel, mobile phone, motor vehicle, steel, ships and petrochemicals. South Korea’s major imports are machinery, oil, and steel. (Bank of Korea) (http://www.tradingeconomics
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Lecture 2: Basic Definitions • • • • GDP Inflation Rate Unemployment Rate Trade and Budget Deficits Gross Domestic Product • First thing we look at (its rate of growth) • Aggregate output: Not easy! – Sum of apples and oranges – Double-counting • Example A Simple Economy • Steel Company – Revenue from sales – Expenses (wages) – Profit $100 80 20 $210 $70 100 • Car Company – Revenue from sales – Expenses • Wages • Steel purchases – Profit 40 • What
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