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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

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  1. 20 July, 17:24
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    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

    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
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