International economics

Learning Objectives: Calculate foreign exchange. Understand Balance of Payments. 
Group activity: Josko Joras (A), December 2012

  • Instructions: Complete exercises 1,2, and 3

For an open economy

GDP = C + I + G + (X – M).

However it’s important to realise that imports don’t subtract from GDP.

Read more about the Big Mac index at The Economist. For more on how Argentina games it, see:

Here’s an intro to Balance of Payments:

Instructor Resource: 

  • Josko Joras (A) Solutions, December 2012
  • Josko Joras (B), December 2012
  • Josko Joras (B) Solutions, December 2012

These resources form part of my Managerial Economics course map. You can watch the full YouTube playlist here. This page ties into Chapter 10 (Sections 10.2 and 10.3) of ‘Economics: A Complete Guide for Business‘.
Share and be social