Describe how the following transactions would affect U.S. exports, imports, and net exports: 1. Students in Prague flock to see the latest movie from Hollywood. 2. Mrs. Jones in Philadelphia buys a new Volvo. 3. The student bookstore at Oxford University in England sells a copy of a US printed/authored textbook. 4. A Canadian citizen shops at a store in northern Vermont to avoid Canadian sales taxes. 5. An American art professor spends the summer touring museums in Europe.

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To determine how the transactions impact US exports, imports, and net exports, one has to determine if the example brings money into the United States or takes money out of the United States.

In the first scenario, money comes into the United States, since students in another country are paying to watch an American movie. This means that US exports and net exports will rise. Remember, to calculate net exports, take the country’s total export value and subtract the total value of the services and goods that it imports.

As with the first scenario, the third scenario should bolster exports and net exports for the United States, as the American book is consumed in England.

With the fourth situation, one could say that the influence on imports, exports, and net exports is neutral, since, based on the wording of the question, the Canadian citizen is traveling to Vermont. This means that the goods aren’t leaving the United States. Something similar might be said of the American art professor in Europe.

When it comes to Mrs. Jones in Philadelphia, the impact her purchase will have on exports, imports, and net exports depends on where her car is made. Most Volvos come from different countries, but some are produced in South Carolina.

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