Questions: Consider the hypothetical trade data presented in the table. Notion Imports Exports () Mexico 100 120 Honduras 100 0 Belize 0 0 Panama 30 30 a. Given the data presented in the table, which countries have open economies? - Belize - Honduras - Mexico - Panama b. Which country is running a trade surplus? - Mexico - Honduras - Panama - Belize

a. Given the data presented in the table, which countries have open economies?

To determine which countries have open economies, we look for countries that have either imports or exports greater than zero. An open economy engages in international trade, either by importing or exporting goods.

• Mexico: Imports = 100, Exports = 120. Mexico has both imports and exports, indicating an open economy.
• Honduras: Imports = 100, Exports = 0. Honduras has imports but no exports, which still indicates some level of openness.
• Belize: Imports = 0, Exports = 0. Belize has neither imports nor exports, indicating a closed economy.
• Panama: Imports = 30, Exports = 30. Panama has both imports and exports, indicating an open economy.

The countries with open economies are Mexico, Honduras, and Panama.

b. Which country is running a trade surplus?

A trade surplus occurs when a country's exports exceed its imports.

• Mexico: Exports = 120, Imports = 100. Exports are greater than imports, indicating a trade surplus.
• Honduras: Exports = 0, Imports = 100. Exports are less than imports, indicating a trade deficit.
• Belize: Exports = 0, Imports = 0. No trade activity, so neither a surplus nor a deficit.
• Panama: Exports = 30, Imports = 30. Exports equal imports, indicating a balanced trade.

The country running a trade surplus is Mexico.