Why do the exchange rates matter? How much exposure does the United States have to trade with the rest of the world? Use the data at the Bureau of Economic Analysis to explore these questions. Go to U.S. Bureau of Economic Analysis to access the full dataset.
The source of the data is the Bureau of Economic Analysis, and they are available U.S. Bureau of Economic Analysis.
To access the data:
1. Go to U.S. Bureau of Economic Analysis and select “Interactive data” under the Tools tab.
2. Next, select “International transactions, international services, and international investment position (IIP) tables.”
3. Then select “Begin using data….”
4. Select “International transactions.”
5. Finally, select “Table 1.1: U.S. international transactions.”
6. Choose “Modify,” select the years 2000 to 2016 and annual data.
7. Select “Refresh” to update the table.
a. For the years in the table, fill in the blanks.
| Value of Exports (goods, services, and income receipts) | Value of Imports (goods, services, and income receipts) | Current Account Balance | |
|---|---|---|---|
| 2000 | fCtop5QSidm6V6bcP5ys5bIeNyLuSS3PHbU1kLlJckupONOxoa5nt82TG7+U/fd56ndiXA== | NPzS3mqOPL99Av3L0cxtSNELpqNbtJkII7T0WeRlL4aVIwp4F4c/oKsofRT69HDiEhoqHA== | 8xjoUcDXJ+BbZDz1A0Yu7ujze7Q= |
| 2007 | AmJyzfPXIgMYJC2Ze+4tcejdunoMXhUKRfQiJtFLhIEBATY3cEBZilnyaCayhA32xx0HcQ== | tY59kn9tzbd6j+Zd6FoRoMv1lMKsUoJAFeim9kKZPIiCzI1Gz1s5voE/fs2t3dFI1rcmyA== | 8xjoUcDXJ+BbZDz1A0Yu7ujze7Q= |
| 2015 | /9JZeCdpp6+RBd9+tRdXbmX4UfiXXSTk | zs14EyC4fkbvOe1k+ZkJro7g6QAph1qu | 8xjoUcDXJ+BbZDz1A0Yu7ujze7Q= |
We know that exchange rate movements can impact a country’s trade position. Does it matter if the country has a fixed or floating exchange rate? Let’s explore this question by looking at the exchange rate data from the FRED Economic Data, provided by the Federal Reserve Bank of St. Louis. Go to Federal Reserve Economic Data to access the full dataset.
To access the data:
Go to Federal Reserve Economic Data and enter “Mexico exchange rate” into the search field.
2. Under “Mexico / US foreign exchange rate,” select the “Monthly” option and select all years by extending the slider below the graph all the way to the left.
3. Once the graph is in view, select “Edit graph” and then “Add line.” Search for the monthly UK exchange rate. Highlight and select “Add series.”
4. Repeat steps 1-3 for Venezuela and China.
5. The final graph will show the data for Mexico, the U.K., Venezuela, and China on a monthly basis for the available years.
a. Based on the data in the graph, which, if any, of the countries exhibit a fixed exchange rate system? To answer, choose the appropriate selection in the drop-down menu.
| Fixed or floating | |
|---|---|
| Venezuela | h5x7yNWTqvPscvOZ2tlmQjZIxf8= |
| U.K. | Xe4rDPSUvqmVT/k8zobqgY1h5+I= |
| Mexico | Xe4rDPSUvqmVT/k8zobqgY1h5+I= |
| China | h5x7yNWTqvPscvOZ2tlmQjZIxf8= |