Effect of Transactions
Students in Prague flock to see the latest movie from the Hollywood
The U.S. net exports include films produced by the movie industry, meaning that the number of profits from exports will increase as a result of this transaction (United States (USA) exports, imports, and trade partners). Films created and produced by Hollywood annually contribute to American wealth. Similarly, the nation’s net exports will likely improve by a small margin as a result of this action.
Mrs. Jones in Philadelphia buys a new Volvo
The decision of Mr. Jones to purchase a Volvo will inadequately affect the country’s imports and exports, primarily because a single person’s decision is too insignificant to affect an entire country. However, from a discussion perspective, this action can increase the U.S. spending on imports, as the car bought by Mr. Jones is foreign. In an alternative scenario, Jones’s money could have supported a local manufacturer instead.
The student bookstore at Oxford University in England sells a copy of a U.S. printed/authored textbook.
The purchase of a US-published and authored book will contribute to the country’s export revenues and net exports, as it is a product made and sold from the United States to another nation and its people. The book sold at the student bookstore was printed inside of the U.S., meaning that it had to be shipped and sold to the bookstore as educational material.
Canadian citizen shops at a store in northern Vermont to avoid Canadian sales taxes
The decision of a Canadian man to shop in a U.S. store does not affect either imports or exports, as the man is shopping in the U.S. territory itself.
An American art professor spends the summer touring museums in Europe
The decision of an art professor to tour European museums does not affect U.S. imports or exports in any way. The profits of the affected countries go to their cultural exports profits, and the professor spends his own income.
Reference
United States (USA) exports, imports, and trade partners. OEC. (n.d.). Web.