Bài thuyết trình bằng tiếng anh môn Kinh tế Vi mô - các khái niệm cơ bản về nền kinh tế mở của SV trường Đại học Ngoại thương, cs2 tp.HCM, file thiết kế đẹp, có nhiều ví dụ minh họa rõ ràng, dễ hiểu, tải về dùng ngay
CHAPTER 18 OPEN-ECONOMY MACROECONOMICS BASIC CONCEPTS Student: LÊ HỒ MINH GIANG OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS Does not interact with other economies in the world Company Logo OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS Open economy: interacts freely with other economies around the world Buy & sell Company Logo Goods & services Capital assets OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital The Prices for International Transactions: Real and Nominal Exchange Rates A First Theory of Exchange-Rate Determination: Purchasing-Power Parity OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital 1.1 The Flow of Goods: Exports, Imports, Net Exports 1.2 The Flow of Financial Resources-Net Capital Outflow 1.3 The Equality of Net Exports and Net Capital Outflow 1.4 Saving, Investment, and their Relationship to International Flows OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital 1.1 The Flow of Goods Domestically produced goods $ services that are sold abroad Goods and services that are produced abroad and sold domestically OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital 1.1 The Flow of Goods Net exports (Trade balance) = Exports - Imports Trade deficit Balanced trade Trade surplus OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital 1.1 The Flow of Goods The tastes of consumers for domestic & foreign goods The prices of goods at home & abroad Factors influence exports, The exchange rates at which people can use domestic curency to buy foreign currencies imports & Net exports The incomes of consumers at home & abroad The cost of transporting goods from country to country Government policies toward international trade OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital 1.2 The Flow of Financial Resources: Net Capital Outflow NCO = Purchases of foreign asests _ purchases of domestic assets by domestic residents by foreigners Foreign direct investment Capital is owned & operated (FDI) by a foreign entity Two forms of the flow of capital abroad Foreign porfolio investment (FPI) Is financed with foreign money but operated by domestic residents OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital 1.2 The Flow of Financial Resources: Net Capital Outflow NCO = Purchases of foreign asests _ purchases of domestic assets by domestic residents by foreigners How does these activities affect the US NCO? A US resident buys stock in Telmex, the Mexican telecommunications company Increase A Japanese resident buys a bond issued by the US government Decrease OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital 1.2 The Flow of Financial Resources: Net Capital Outflow The real interest being paid on foreign assets The real interest being paid on domestic assets Factors influence NCO The perceived economic and political risks of holding assets abroad The government policies that affect foreign ownership of domestic asset OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital 1.3 The equality of Net Exports and Net Capital Outflow: Net exports (NX) = Net Capital Outflow (NCO) Example: You sell your products to Japanese consumer for 1000 yen NX of VN ? Export activity => VN NX increase Use the yen to purchase another Japanese assets => NCO ? rise Use the yen to purchase another Japanese goods => NX ? NCO? Import increase => NX = => No impact on NCO OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The international Flows of Goods and Capital 1.4 Saving, Investment, their Relationship to the International Flows When a Vietnamese citizen saves VND of his income, that VND can be used to finance accumulation of domestic capital or it can be used to finance the S = I + NX = I + NCO purchase of capital abroad National saving Buy stock issued by Vinamilk Mutual Fund Domestic investment Buy stock issued by Toyota NCO OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The Prices for International Transactions: Real and Nominal Exchange Rates 2.1 The nominal exchange rate: the rate at which a person can trade the currency of one country for the currency of another Ex: 80 yen per dollar = 1/80 dollar (0.0125 dollar) per yen $1 = 10 pesos Mexico peso = ???? $0.10 OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The Prices for International Transactions: Real and Nominal Exchange Rates Bath Peso Philippine 625.800 USD 26772 bath 478.09 EUR 23300 EUR Peso USD OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The Prices for International Transactions: Real and Nominal Exchange Rates 2.1 The nominal exchange rate: Appreciation/ Depreciation: an increase/ decrease in the value of a currency as measured by the amount of foreign currency it can buy A currency appreciates/ depreciates => strengthen/weaken 2018: 1USD = 22.498 VND 2019: 1USD = 23.300 VND The dollar/ VND is said to appreciate/depreciate (strengthen/weaken) OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The Prices for International Transactions: Real and Nominal Exchange Rates 2.2 The real exchange rate the rate at which a person can trade the goods and services of one country for the goods and services of another Example: A bushel (27,2kg) of American rice sells for $100 + A bushel of Japanese rice sells for 16,000 yen + The nominal exchange rate is 80 yen per dollar The real exchange rate = ???? OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS The Prices for International Transactions: Real and Nominal Exchange Rates 2.2 The real exchange rate Example: + US rice : $100 (domestic price) + Japanese rice: 16,000 yen (foreign price) + The nominal exchange rate: 80 yen/dollar The real exchange rate is a key determinant of how much a country exports and imports OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS A First Theory of Exchange-Rate Determination: Purchasing-Power Parity Purchasing-power parity: a unit of any given currency should be able to buy the same quantity of goods in all countries OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS A First Theory of Exchange-Rate Determination: Purchasing-Power Parity The Basic Logic of Purchasing-Power Parity Law of one price: a good must be sold at the same price in all locations If a good sold for less in one location than another, a person could make a profit by buying the good in the location where it is cheaper and selling it in the location where it is more expensive The process of taking advantage of differences in prices for the same item in different markets is called arbitrage If arbitrage happens, the difference in price of two market will be finally equal OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS A First Theory of Exchange-Rate Determination: Purchasing-Power Parity The same logic should apply to currency 22 A unit of all currencies must have the same real value in every country US A US dollar If this was not the case, people would take advantage JAPAN of the profit making opportunity and this arbitrage would then push the real values of the currencies to equality OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS A First Theory of Exchange-Rate Determination: Purchasing-Power Parity The same logic should apply to currency OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS A First Theory of Exchange-Rate Determination: Purchasing-Power Parity The same logic should apply to currency Ontario: $8.75 Canadian Beer is produced in Canada Michigan: $5.19 U.S Exchange rate: $0.67 U.S = $1.00 Canadian • How much would it cost in U.S currency to buy the beer in Ontario? 8.75 x 0.67 = $5.86 U.S • How much would it cost in Canadian currency to buy the beer in Michigan? 5.19 / 0.67 = $7.75 Canadian OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS A First Theory of Exchange-Rate Determination: Purchasing-Power Parity The same logic should apply to currency Ontario: $8.75 Canadian Beer is produced in Canada Michigan: $5.19 U.S Exchange rate: $0.67 U.S = $1.00 Canadian • Is there any arbitrage opportunity? Yes A price differential exits The beer is more expensive in Canada and cheaper in US • Where would you buy and where would you sell? How much profit could you expect on a six-pack? Buy in Michigan, sell in Canada Profit = $5.85 - $5.19 = $0.67 U.S ... a country exports and imports OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS A First Theory of Exchange-Rate Determination: Purchasing-Power Parity Purchasing-power parity: a unit of any given... goods in all countries OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS A First Theory of Exchange-Rate Determination: Purchasing-Power Parity The Basic Logic of Purchasing-Power Parity Law of one price:... currencies to equality OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS A First Theory of Exchange-Rate Determination: Purchasing-Power Parity The same logic should apply to currency OPEN-ECONOMY MACROECONOMICS: