During a financial reporting period, a nation exported 810 million worth of physical merchandise. Over the same period, the country recorded + 50 million in net unilateral transfers from abroad. Calculate the nation's current account balance in millions of dollars (use a negative sign to indicate a deficit).
Answer: -5 million dollars
Answer
The nation's current account balance is - 5 million).
The Current Account balance is calculated by taking the sum of the balance of visible trade (merchandise exports minus merchandise imports), net invisible trade (services balance), and net unilateral transfers. Here, the visible trade balance is 810 million = - 115 million) and net unilateral transfers (+ 170 million + 50 million = -$5 million.
Step-by-Step Solution
Key Concept
Structure of Balance of Payments: Current Account Balance
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