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

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Answered by Arron T. Economics tutor

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