If an economy has a high level of trade in goods and services relative to GDP and its exports and imports are balanced, what value will the net flow of foreign investment be

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If an economy has a high level of trade in goods and services relative to GDP and its exports and imports are balanced, the value of the net flow of foreign investment will be balanced and the country will be a price-taker in all traded goods. GDP measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.

What makes a country to be a price-taker?

A price taker means a market participant that is not able to dictate the prices in a market. Therefore, a price taker must accept the prevailing market price. A price taker lacks enough market power to influence the prices of goods or services.

Therefore, the correct answer is as given above

learn more about price-taker: https://brainly.com/question/15416827

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