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Complete the table below and study the trading statistics of country X and answer the questions below. Given data: Invisible Export prices: 20BFCFA Invisible Import Prices: 7BFCFA Visible Export Price

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4 steps

Part a

Complete the table below

Commercial transactionCharacteristicsDocument
iUsed during paymentWhen the buyer makes payment for purchasesReceipt
iiCorrecting errors on financing transactionCorrect errors of overchargeCredit Note
iiiUsed after the good are supplied using fastest means of transport in home tradeTo inform the buyer of the means of transport used by the seller and when to expect the goodsConsignment Note
ivUsed in home trade to accompany the goodsPrepared in two copies and conveyed by the driverDelivery Note

Part b· 4 steps

Study the trading statistics of country X and answer the questions below.

Given data:

  • Invisible Export prices: 20BFCFA
  • Invisible Import Prices: 7BFCFA
  • Visible Export Price: 550BFCFA
  • Visible Import Price: 400BFCFA
  • Capital Inflow: 210BFCFA

We will calculate the Balance of Visible Trade, Balance of Invisible Trade, Balance of Trade (Current Account Balance), and Balance of Payments.

  1. Calculate the Balance of Visible Trade.

    Balance of Visible Trade=Visible Export Price−Visible Import Price\text{Balance of Visible Trade} = \text{Visible Export Price} - \text{Visible Import Price} Balance of Visible Trade=550BFCFA−400BFCFA\text{Balance of Visible Trade} = 550\text{BFCFA} - 400\text{BFCFA} Balance of Visible Trade=150BFCFA\text{Balance of Visible Trade} = \boxed{\text{150BFCFA}}

  2. Calculate the Balance of Invisible Trade.

    Balance of Invisible Trade=Invisible Export prices−Invisible Import Prices\text{Balance of Invisible Trade} = \text{Invisible Export prices} - \text{Invisible Import Prices} Balance of Invisible Trade=20BFCFA−7BFCFA\text{Balance of Invisible Trade} = 20\text{BFCFA} - 7\text{BFCFA} Balance of Invisible Trade=13BFCFA\text{Balance of Invisible Trade} = \boxed{\text{13BFCFA}}

  3. Calculate the Balance of Trade (Current Account Balance).

    Balance of Trade=(Visible Export Price+Invisible Export prices)−(Visible Import Price+Invisible Import Prices)\text{Balance of Trade} = (\text{Visible Export Price} + \text{Invisible Export prices}) - (\text{Visible Import Price} + \text{Invisible Import Prices}) Balance of Trade=(550BFCFA+20BFCFA)−(400BFCFA+7BFCFA)\text{Balance of Trade} = (550\text{BFCFA} + 20\text{BFCFA}) - (400\text{BFCFA} + 7\text{BFCFA}) Balance of Trade=570BFCFA−407BFCFA\text{Balance of Trade} = 570\text{BFCFA} - 407\text{BFCFA} Balance of Trade=163BFCFA\text{Balance of Trade} = \boxed{\text{163BFCFA}}

  4. Calculate the Balance of Payments.

    Assuming the Balance of Payments includes the Balance of Trade (Current Account) and Capital Inflow.

    Balance of Payments=Balance of Trade+Capital Inflow\text{Balance of Payments} = \text{Balance of Trade} + \text{Capital Inflow} Balance of Payments=163BFCFA+210BFCFA\text{Balance of Payments} = 163\text{BFCFA} + 210\text{BFCFA} Balance of Payments=373BFCFA\text{Balance of Payments} = \boxed{\text{373BFCFA}}
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