Trade Balances Economics
Description
Table 12.4 U.S. International Transactions,
2006 ($ billions)
Current Account transactions
Exports of Merchandise $1,023.1
Imports of Merchandise -1,861.4
Balance of Trade (Goods) -838.3
Exports of Services 422.6
Imports of Services -342.8
Balance on Services 79.7
Balance on Goods & Service -758.5
Income Receipts on U.S. Assets Abroad 650.5
Income Payments of Foreign Assets in the U.S. -613.8
Balance on Investment Income -36.6
Balance on Goods, Services, and Income -721.9
Unilateral Transfers, Net -89.6
Balance on Current Account -811.5
Capital Account transactions, net -3.9
Financial Account Transactions -1,055.2
Change in U.S. Owned Assets Abroad
U.S. Official Reserve Assets 2.4
U.S. Government Assets, Other than Official
Reserve 5.3
U.S. Private Assets -1,062.9
Change in Foreign Owned Assets in the U.S. 1,859.6
Foreign Official Assets 440.3
Foreign Private Assets 1,419.3
Balance on Financial Account 804.4
Statistical Discrepancy -17.8
Table 12.4 provides U.S. International
Transactions for 2006. The accounts are in balance in total even though
there is a substantial deficit in the current account. What does a
deficit in the current account represent? What accounts offset the
deficit in the current account to bring the accounts into balance in
total? What do these accounts represent? How does your explanation
help you to interpret Figure 12.4?
Your 200 word answer should focus on selecting
and organizing your most relevant comments in a coherent fashion.
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