Question

At a port in Kenobi Bay in the island nation of Obi-Taiwan, a cargo ship is currently being loaded and unloaded. Kenobi bay handles $256695936 of trade every year.

A cargo container of Chinese consumer electronics is one such container on the ship. If that container contains 50 phones worth $222 each and 30 tablets worth $356 each, how much will it affect Obi-Taiwanese GDP when those items are sold?
The GDP will decrease by $ _____. Calculate the answer by read surrounding text. .

If Obi-Taiwan sends that cargo container back to China loaded with 24 laptop computers each worth $812 on the Chinese market, how much will Obi-Taiwan's GDP change when they are sold?
GDP will increase by $  _____. Calculate the answer by read surrounding text.

After just those two trades, Obi-Taiwan's net exports are $  _____. Calculate the answer by read surrounding text. .

Answer 1

The Obi-Taiwan has imported 50 phones at $222 each and 30 tablets at $356 each.

Calculate the total value of imports -

Total value = [$222 * 50] + [$356 * 30]

Total value = $11,100 + $10,860

Total value = $21,780

The total value of imports is $21,780

Imports leads to decrease in GDP.

Thus,

The GDP will decrease by $21,780.

The Obi-Taiwan has exported 24 laptops computers at $812 each.

calculate the total value of exports -

Total value = $812 * 24 = $19,488

The total value of exports is $19,488.

Exports leads to increase in GDP.

Thus,

The GDP will increase by $19,488.

Net exports = Exports - Imports

New exports = $19,488 - $21,780 = -$2,292

Thus,

The Obi-Taiwan's net exports are -$2,292.