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Question
What does Balance of payment disclose?
Solution
A Balance of Payment surplus indicates that country’s exports are more than its imports and its government and residents are savers. A Balance of Payment deficit points to the fact that country’s import is more than the export. This situations forces the country to borrow from other countries to pay for its imports.
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RELATED QUESTIONS
Distinguish between Balance of payments and Balance of trade.
Statements incorrect in relation to Balance of Trade:
- It is also referred to as international trade balance.
- Trade surplus arises when export value is greater than import value.
- Trade deficit takes place when import value is greater than export value
- Balance of trade includes value of imports and exports of visible goods only
Systematic record of all international economic transactions of a country during a given period usually a year –
Balance of payments surplus indicates ______.
Define Balance of payments
Distinguish between the following:
Balance of payments and Balance of trade.
Distinguish between the following:
Balance of payments and Balance of trade
Balance of payments and Balance of trade.
Distinguish between the following:
Balance of payments and Balance of trade.
Distinguish between the following:
Balance of payments and Balance of trade
