Macro 2.5 Balance of payments Flashcards
Blance of payments
Record of the transactions conducted between residents of a cousntry and the rest of the world
Current account
Transactions in goods and services between the residents of a country and the rest of the world
Trade in goods
Exports and imports of physical/visibal products
Trade in services
Exports and imports of invisible/intangible products
Primary income
Income generated from UK nationals employed abroad and UK firms that have invested overseas
Secondary income
Transactions between governments, such as bilateral aid or transfers to an international instituition, together with remittances and government transfers of social security payments
International competitiveness
Ability of a country to compete with other nations, determined by price and non-price factors
Exchange rate
Price of one currency in terms of another
