Macroeconomic linkages in the balance of payments

Current account. In an open economy, manufactured products or GDP (Y) are sold domestically and partially exported. The amount of expenses is divided into consumption (C), investment (I) and government spending (G).Since part of the product is exported, its value must also be taken into account and added upon accrual. On the other hand, the […]

Optimal delivery batches for multi-product models

As for single-product deliveries, the total cost of the system consists of the cost of placing orders, maintaining stock and losses due to shortages. Total costs of placing an order: ?i Ki = K0(1+ ?· N)  ,  (4-23) where K0 is the cost that does not depend on the number of simultaneously ordered products and […]

Nominal and real exchange rate

The foreign exchange market is a special market in which foreign exchange transactions are carried out, i.e. exchange of currency of one country for the currency of another country at a certain nominal exchange rate. The nominal exchange (exchange) exchange rate is the relative price of the currencies of the two countries, or the currency […]