Answer to Question #219486 in Microeconomics for kelly

Question

"Kaisin, a South Korean, is in Bangkok to spend and shop."

Explain how the above transactions affect Thailand's imports, exports and net exports.

Answer 1

In this case, the imports of Thailand will remain the same since Kaisin never brought any product into the country. However, considering the person being a citizen of another country, the products shopped will be considered as exports hence increasing the amount of export. The net export will be equal to the export since no service or good was imported into the county by the South Korean.