Over the course of a year, a nation tracked its foreign transactions and arrived

Question

Over the course of a year, a nation tracked its foreign transactions and arrived at the following amounts:

Merchandise Exports = 600
Service Exports = 125
net unilateral transfers = (50)
Domestic assets abroad (capital outflows) = (325)
Foreign assets at home (capital inflows) = 445
Changes in official reserves = 30
merchandise imports = 720
service imports = 105

I need to calculate the following (please provide calculations):

a) This nation's balance of trade is
b) Its current account balance is
c) The nation's capital account balance is

Explanation / Answer

a.) nation's balance of trade =Merchandise Exports + Service Exports - merchandise imports- service imports ........................................=600+125-720-105= - 100=100 deficit

b.) Its current account balance is= nation's balance of trade+net unilateral transfers = - 100+50= - 50=50 deficit

c.)The nation's capital account balance is= - (capital outflows) + (capital inflows) - Changes in official reserves  = -325+ 445-30=90

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