This is an example of Canadian foreign direct investment that increases Canadian net capital outflow.
An open economy is one that interacts freely with other economies around the world. An open economy interacts with other countries in two ways. We buy and sell goods and services in the global product market manufacturing company.
The real exchange rate is the price at which supply and demand match in the foreign exchange market. When the real US exchange rate rises, US goods will be higher than foreign goods, United States exports will decrease, and imports will increase.
The amount of dollars that fall and are exchanged remains unchanged. 22. When the United States real interest rate falls, he becomes one to own US assets. It has become less attractive and has increased US net capital outflows.
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