Suppose Boulinas' exports equal $50 billion, its purchases of foreign assets equal $100 Jbillion, and foreign purchase of Boulinas' assets equal $200 billion. What is the value of
JBoulinas' imports?

Question

Quizplus · Accepted Answer

By using the balance of payments equation, we know that Exports - Imports = Foreign Purchase of Assets - Purchases of Foreign Assets. 
Thus, Imports = Foreign Purchase of Assets - Purchases of Foreign Assets - Exports 
Substituting the given values, we get: 
Imports = $200 billion - $100 billion - $50 billion 
Imports = $150 billion

Suppose Boulinas' Exports Equal $50 Billion, Its Purchases of Foreign