Reference no: EM132961741

Research Assignment : International Flows
You need to find information on international trade and financial flows for your selected country and for Canada. From 2010 to the latest year available. You can create the five graphs you need using the World Bank Open Data database (data.worldbank.org). Detailed instructions on how to use that database are included in the Instructions for Research Assignments 1 and 2, although, since you have used it before, you should now find it easy to navigate (it is a well-designed, simple-to-use web site). Answer the following questions, providing a copy of the graphs to accompany your answers, which should be loaded onto the RA#4 Discussion forum on D2L.
a. Official exchange rate (LCU per US$) for your selected country
• Has the currency been appreciating or depreciating? (Or perhaps both, at different times?)
b. (i) Exports of Goods and Services (% of GDP), for your selected country and for Canada.
(ii) Imports of Goods and Services (% of GDP), for your selected country and for Canada.
• How do these international flows of goods and services for your selected country compare with Canada, which is considered an ‘open' economy with a relatively high amount of exports and imports? (Does your selected country seem to be more or less ‘open' than Canada?)
c. Current Account Balance (BoP, current US$), for your selected country [BoP stands for Balance of (International) Payments]. This represents net exports of goods and services and other net foreign payments (but not ‘net capital outflow').
• Has your selected country been experiencing a current account surplus or deficit? (the
current account is the same as the broad definition of ‘net exports')
d. Net Financial Account (BoP, current US$), for your selected country.
• How does this compare with the Current Account Balance? Does this match what theory tells us about Net Exports (NX) and Net Capital Outflow (NCO)? (allowing for some
‘Statistical Discrepancy' which ensures that our overall ‘Balance of International
Payments' does balance)
e. Do any of these graphs suggest there are risks that a foreign financial investor should be worried about in your selected country?
• Foreign investors will keep a particularly close watch on the exchange rate, because they will have to buy local currency initially to invest, and then sell local currency perhaps 6 or 12 months later to convert their investment back into their home currency.
• They will also watch for shifts in the current account balance in case it signals major imbalance in international flows.

Attachment:- Research Assignment Instructions 4.rar