Question

28) The Balance of Payments (BOP) measure all international transactions between two countries The chart below show six different transactions between the US and China United States Purchased S800 of goods and services Sont $ 100 of humanitarian aid Americans spent 5200 in Chinese stock market American tourist spend 51000 in China Chinese tourists spend S1000 in the US Purchased $ 300 of goods and services • Chinese purchased a $600 business in the US Chinese government purchased US bonds

Answer 1

The question is not complete,the question is missing requirement which is below:

Which country has a trade deficit and which has a trade surplus? Explain how you got your answer and calculate the value of each.

US spent $57100 in China United States while only received $1900 from China United States.

As a result,China United States has trade surplus but US has a trade deficit

Step-by-step explanation:

Balance of Trade= exports of goods and services less imports of goods and services

If amount spent on exports is greater than the one spent on imports there is a trade surplus and if exports amount is less than imports then there is a trade deficit

United States

Inflows from the China United States=$1900

Outflows to China United States=$57100

Inflows from China

Chinese tourist $1000

Purchased goods and services $300

Chinese purchased business $600

Total inflows $1900

Outflows to China

Purchased goods $800

Humanitarian $100

Spend in stock market $5200

American tourist $51000

Total $57100