An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world financial markets. although it can often result in an imbalance in these markets, the following identity must remain true:

net capital outflownet capital outflow = = net exportsnet exports
in other words, if a transaction directly affects the left side of this equation, then it must also affect the right side. the following problem will you understand why this identity must hold.

suppose you are a software engineer living in the united states, and you just sold your latest product to a russian consumer for rub 7,000.

determine the effects of this transaction on exports, imports, and net exports in the u. s. economy, and enter your results in the following table. if the direction of change is "no change," enter "0" in the magnitude of change column.

hint: the magnitude of change should always be positive, regardless of the direction of change.

direction of change magnitude of change
(rubles)
exports
increase/no change/decrease
imports
increase/no change/decrease
net exports increase/no change/decrease
because of the identity equation that relates to net exports, the in u. s. net exports is matched by in u. s. net capital outflow. which of the following is an example of how the united states might be affected in this scenario? check all that apply.

you store the rubles in your safety deposit box at home.

you purchase rub 7,000 worth of stock in a russian corporation.

you buy rub 7,000 worth of russian bonds.

Resources that are valuable but not rare can be categorized asanswers: organizational weaknesses.distinctive competencies.organizational strengths.complementary resources and capabilities.

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Alaska king crab fishing in the 1960s and '70s was a dangerous but rich fishery. boats from as far away as california and japan braved the treacherous gulf of alaska crossing to reach the abundant king crab beds in cook inlet and bristol bay. suddenly, in the early 1980s, the fishery crashed due to over fishing. all crabbing in those areas ended. to this day, there is no crabbing in bristol bay or cook inlet. a. how would an economist explain the decline of the alaska king crab fishery