文档介绍：Open-Economy Macroeconomics: Basic Concepts
Chapter 29
Open and Closed Economies
A closed economy is one that does not interact with other economies in the world.
There are no exports, no imports, and no capital flows.
Open and Closed Economies
An open economy is one that interacts freely with other economies around the world.
An Open Economy
An open economy interacts with other countries in two ways.
It buys and sells goods and services in world product markets.
It buys and sells capital assets in world financial markets.
An Open Economy
The . is a very large and open economy – it imports and exports huge quantities of goods and services.
Over the past four decades, international trade and finance have e increasingly important.
The Flow of Goods: Exports, Imports, Net Exports
Exports are domestically produced goods and services that are sold abroad.
Imports are foreign produced goods and services that are sold domestically.
The Flow of Goods: Exports, Imports, Net Exports
Net exports (NX) are the value of a nation’s exports minus the value of its imports.
Net exports are also called the trade balance.
The Flow of Goods: Exports, Imports, Net Exports
A trade deficit is a situation in exports (NX) are negative.
Imports > Exports
A trade surplus is a situation in exports (NX) are positive.
Exports > Imports
Balanced trade refers to exports are zero – exports and imports are exactly equal.
Factors That Affect Net Exports
The tastes of consumers for domestic and foreign goods.
The prices of goods at home and abroad.
The exchange rates at which people can use domestic currency to buy foreign currencies.
Factors That Exports
The es of consumers at home and abroad.
The costs of transporting goods from country to country.
The policies of the government toward international trade.