Let the initial current account deficit of Canada equal $200 billion. Explain how each of the following will affect the change in net foreign investment position and/or current account balance for Canada:
A) Initially, the value of foreign-owned assets in Canada is $2.0 trillion (US dollar) and the value of assets owned by Canada overseas is $1.8 trillion (US. dollar). Now the value of foreign-owned assets in Canada decreases by 12% and the value of assets owned by Canada increases by 9%.
B) Canadian dollar has been appreciated in terms of US dollar by 5%.
C) Initially, Canada exports $150 billion worth of crude oil to overseas markets. Now it decreases its export by 15% due to increased publicity against Canadian crude oil.
