Open Economy Macroeconomics (Basic Concepts) - Macroeconomics Lecture # 08(B)
This video differentiates between open and closed economies. It further explains the flow of goods in the form of exports, imports and net exports. The concepts elaborated in the video include trade deficit, trade surplus and the factors affecting net exports. The flow of capital such as net foreign investment and the variables influencing net foreign investment are viewed in detail. Lastly, saving, investment and their relationship to international flows along with nominal exchange rates is assessed as well.