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International Economics
Indicate whether the statement is true, false, or uncertainand explain why.
1. The net foreign asset position of South Africa in 2010 and 2011, respectively, was-70.5 billion USD and -19.7 billion USD. The current account in 2010 was -10.1 billion USD. There must be an error in the official numbers. The correct figure should be a net international investment position of -80.6 billion USD.
2. The fact that the United States made large valuation gains on average over the past 30 years means that the rest of the world as a whole made equally large valuation losses. After all, this is a zero sum game.
3. The United States has large unrecorded foreign asset holdings.
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