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21 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Balance of Payments |
Record of all transactions relating to international trade |
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Current Account |
Part of BoP where the values of exports and imports are records |
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Current Account Components |
The balance of trade in goods and services |
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What kind of trade are services |
Invisible trade |
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Invisible trade and taxes and tariffs |
Can’t be imposed on invisible trade |
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How to calculate balance of trade in goods |
Exports of goods - Imports of goods |
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Balance of Trade in services |
Exports of services - imports of services |
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Current account formula |
Total exports - Total imports Current balance |
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Export |
A good or service you send to foreign countries from your country |
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Import |
A good that you bring into your own country from foreign countries |
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Visible Exports |
Actual goods |
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Invisible Exports |
Services |
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Visible Balance |
Visible Exports - Visible Imports |
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Invisible Balance |
Invisible Exports - Invisible Imports |
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Total Export |
Invisible Exports + Visible Exports |
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Balance of Trade in Goods |
Exports of goods - Imports of Goods |
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Balance of Trades in Services |
Export of services - Import of Services |
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How does the UK solve the current account deficit |
Slow down consumer spending Boost productivity Devaluation of Currency Tariffs Quotas |
Five ways |
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Slowdown consumer spending |
Reduce imports Boost savings, by increasing interest rates. Monetary Policy Increase taxes
Consequences : economic growth reduces, GDP reduces, unemployment increases |
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Boost Productivity |
Implement supply side policy Better education and training Privatisation Investment into infrastructure Increase exports and reduce attractiveness of imports |
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Devaluation of Currency |
Exports cheaper, imports more expensive Make currency weaker with exchange rates |
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