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.

12 Sep 2025
Answer :
Word Count : 314
The balance of payment (BOP) is a record of all economic transactions between residents of a country and the rest of the world. Contrary to the statement, BOP has a significant impact on the exchange market because any surplus or deficit in the balance of payments can lead to appreciation or depreciation _____ __________ _______ ___ _____ ____ __________ ___ __________.
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