Th2.6: Economic Growth vs Balance of Payments Flashcards
1
Q
Some countries such as India have seen rapid economic growth leading to…
A
a balance of payments problem
2
Q
How has India experienced this issue?
A
the country is so large that its industry is largely producing goods for its own people and the wealth of the people has led to increased demand for imported goods
3
Q
How has China experienced this?
A
have seen massive economic growth but that has been largely been by producing goods for exports and therefore their balance of payments is in a surplus
