Open economy = C + I + G+ (X-M) Adds in Exports and Imports, also known as…. International Trade!
An oldie but a goodie (1951) – How Foreign Trade Works http://www.youtube.com/watch?v=- 74YMKm2NE8 http://www.youtube.com/watch?v=- 74YMKm2NE8
Surplus: Exports>Imports, or Net exports what country does this??? Deficit: Imports>Exports, or Net imports know any country that does this?
The good side of each: Trade surplus = More money and jobs, since people are buying all your stuff Trade deficit = More stuff at cheaper prices! The bad side of each: Trade surplus = Less stuff for your own people; dependent on foreign buyers Trade deficit = Jobs and money are going overseas; dependent on foreign producers