How would the following transactions affect U.S. exports, imports, and net exports?

a. An American art professor spends the summer touring museums in Europe.
b. Students in Paris flock to see the latest movie from Hollywood.
c. Your uncle buys a new Volvo.
d. The student bookstore at Oxford University in England sells a copy of this textbook.
e. A Canadian citizen shops at a store in northern Vermont to avoid Canadian sales taxes.

Question

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Respuesta :

ewomazinoade ewomazinoade · Answer 1 · 2021-01-04T01:48:14+01:00

Answer:

A. As a result of the professors activities, import would increase while export remains unchanged. Net export would reduce.

B. Export would increase while import remains unchanged. Net import would increase

C. Volvos are made in Sweden. So, the Volvo would be imported. This increases import and export remains unchanged. Net export would reduce.

D. The sales takes place in England, so US export, import and net export would remain unchanged.

E. Export would increase while import remains unchanged. Net import would increase

Explanation:

Net export = Export - Import