Balance of payments Flashcards
1
Q
When exports are more than imports it is a…
A
Current account surplus
2
Q
When imports are more than exports it is a…
A
Current account deficit
3
Q
The UK traditionally has a large deficit on the…
A
Trade in goods
4
Q
What does the trade in goods measure?
A
net exports of visible items
5
Q
What are the causes of Trade in goods (deficit) in the UK?
A
Increase in demand for consumer goods
Decline in manufacturing sector
Lower production of primary materials such as gas and oil.
A strong currency
6
Q
The UK traditionally runs a large surplus on the…
A
Trade in services
7
Q
A
