Question
Comment on the following statements:
a) Balance of payment does not affect the exchange market.
b) An import quota is the complicated instrument for implementing a policy of non-tariff barriers.
c) World GDP has grown at the faster rate than the world merchandise trade.
d) The developed countries have increasingly become the recipients of FDI.
Answer :
Word Count : 324
The balance of payment (BOP) is a comprehensive record of a country's economic transactions with the rest of the world, including exports, imports, capital flows, and financial transfers. Contrary to the statement, BOP significantly affects the exchange market because any surplus or deficit in the BOP can influence the demand and supply of a country's currency. For example, a BOP deficit usually leads to ________ ______ ___ ______ _____ _____ _____ _________ _______ _____ _______.
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The balance of payment (BOP) is a comprehensive record of a country's economic transactions with the rest of the world, including exports, imports, capital flows, and financial transfers. Contrary to the statement, BOP significantly affects the exchange market because any surplus or deficit in the BOP can influence the demand and supply of a country's currency. For example, a BOP deficit usually leads to ________ ______ ___ ______ _____ _____ _____ _________ _______ _____ _______.
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