Chapter :Openness in Goods and financial market 96-1: Openness in Goods Market 6-2: Openness in Financial Market 6-3: Conclusions and a look ahead
Chapter 6:Openness in Goods and Financial Market 6-1:Openness in Goods Market 6-2:Openness in Financial Market 6-3:Conclusions and a Look ahead
6-1:Openness in Goods Market The choice between domestic and Foreign Goods e Nominal Exchange Rates ● Real exchange rates
6-1:Openness in Goods Market The Choice between Domestic and Foreign Goods ⚫ Nominal Exchange Rates ⚫ Real Exchange Rates
6-1BOpenness in Goods Market Table 18-1: Ratios of exports to gdp for Selected oEcD Countries. 1997 Country Export Ratio/ Country Export Ratio United States 12% Switzerland 40% Japan 10% Austria 38% Germany 23% Belgium 73% United Kingdom 29% Luxembourg 91%
6-1:Openness in Goods Market Table 18-1:Ratios of Exports to GDP for Selected OECD Countries,1997 Country Export Ratio Country Export Ratio United States 12% Switzerland 40% Japan 10% Austria 38% Germany 23% Belgium 73% United Kingdom 29% Luxembourg 91%
Appendix: The Sum of Trade and Proportion in GDP Year SUM Proportion Year SUMProportion (RMB)In GDP(%) RMB) In GDP(%) 19783550 98 199523499.9402 1980570.0 12.6 1996241338356 198520667 23.1 1997269672 36.2 199055601 30.0 1998268577 34.3 199172258334 1999268963 32.8 199291196342 2000353686 40.1 199311271.0325 200138021.3 396 199420381943.6 200246309945.2
Appendix: The Sum of Trade and Proportion in GDP Year SUM (RMB) Proportion In GDP(%) Year SUM (RMB) Proportion In GDP(%) 1978 355.0 9.8 1995 23499.9 40.2 1980 570.0 12.6 1996 24133.8 35.6 1985 2066.7 23.1 1997 26967.2 36.2 1990 5560.1 30.0 1998 26857.7 34.3 1991 7225.8 33.4 1999 26896.3 32.8 1992 9119.6 34.2 2000 35368.6 40.1 1993 11271.0 32.5 2001 38021.3 39.6 1994 20381.9 43.6 2002 46309.9 45.2
Nominal Exchange Rates From the point of view of United states Looking at Germany Nominal exchange rate E Price of dm in terms of dollars Appreciation of the dollar Price of dollars in dm increases equivalently: price of DM in dollars decreases equivalently EXchange rate decreases: Ey Depreciation of the dollar Price of dollars in DM decreases equivalently price of DM in dollars increases equivalently -EXchange fate inereases: Ei
Nominal Exchange Rates From the Point of View of United States Looking at Germany Nominal exchange rate E Price of DM in terms of dollars Appreciation of the dollar Price of dollars in DM increases equivalently: price of DM in dollars decreases equivalently: Exchange rate decreases:E↓ Depreciation of the dollar Price of dollars in DM decreases equivalently: price of DM in dollars increases equivalently: Exchange rate increases:E↑