How has exchange rate instability affected international trade and investment?


Suppose Lufthansa buys 10 Boeing 747s for $150 million in 2012, financed by a five-year loan from the U.S Export—Import bank. There is a one—year grace period on principal and interest payments. What is the net impact of this sale on the U.S. balance of payments in 2012?

What is the effect of a trade deficit on the current account balance?
farid123
Asked May 20, 2013

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