What is the balance of payments?

Current accountThe balance of payments plus net investment incomes from overseas assets and net transfersBalance of trade in goods: the difference between imports and exports of goods in the primary and secondary sector (ask for an example)Balance of trade in services: the difference between imports and exports of services from the tertiary sector (ask for an example)Net investment comes from interest payments, profits and dividends from external assets from abroadExample:I would provide an example of a current account where you would have to work out whether there was a deficit or a surplusReasons for either a deficit or a surplus:Strength of domestic sectors - price and qualityExchange ratesIncome levels

AT
Answered by Arron T. Economics tutor

2309 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What are the factors affecting the price elasticity of demand?


Explain why a 'strong' pound might reduce the sales of steel in the UK.


Why can firms only make normal profit in the long run when under perfect competition?


What are the main causes of unemployment in the UK? CCEA 2013 Summer paper 2


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning