Define favourable and non favorable balance of trade

Q: A summary of a country's economic transactions with foreign residents and governments is called the…

A: Balance of payments (BOP) is a record of economic transitions between the residents of one country…

Q: The balance of payments of a country on current account is equal to ___________. Select one: a.…

A: Balance of payment is an account that record all the international transactions of a country with…

Q: Find the current account balance when the trade balance are 2,81,000 and the invisible balance are…

A: Generally in the given question Trade balance are given as = 281000 Invisible balance = 391000…

Q: What is the key difference that determines whether an international transaction appears in the…

A: The difference between all money moving into a country in a given period of time (e.g., a quarter or…

Q: Which of the following would cause exports to rise?        A) A depreciation of the exchange rate…

A: A weaker domestic currency invigorates products and makes imports more costly; on the other hand,…

Q: In a recession, the trade balance often improves because

A: Recession is a term used to describe a slowdown in the economy that persists over a few months.…

Q: The balance of trade refers to the balance of imports and exports. True or false

A: Balance of payments is the records of all the transactions of the economy with the rest of the…

Q: Define the following terms.  a. Trade b. Nominal Exchange rate c. Real Exchange rate d. Absolute…

A: The economics is the social science that study how the individual allocates their scarce resources…

Q: The GDP for the United States is $18,036 billion and its current account balance is –$484 billion.…

A: Answer to the question is as follows :

Q: Define each of the following terms: c. Trade deficit; devaluation; revaluation

A: Trade deficit: Trade deficit can be defined as a situation where country's import exceeds its…

Q: What is exchange rate? (import/export)

A: Exchange rate is that rate of conversion at which one currency is exchanged with another currency.…

Q: Would it be accurate to think of a fixed exchange rate as a simultaneous price ceiling and price…

A: No, it would not be accurate to think of a fixed exchange rate as a simultaneous price ceiling and…

Q: Why does exchange rates change.

A: Foreign exchange rates are determined by supply and demand. Increased demand for British goods, for…

Q: EXPLAIN IN DETAIL GENERAL ASPECTS OF BALANCE OF TRADE.

A: The Balance of trade (BOT) can be defined as the difference between the value of a country's imports…

Q: What is capital flight? When a country experiences capital flight, what is the effect on its…

A: Capital flight refers to the situation where assets or money rapidly flows out of the country…

Q: How does a fall in the exchange rate cause an increase in the cost of raw imported materials?

A: The import and export of a country are affected by the exchange rates.

Q: balance trade has, in most cases been unfavorable. What could be the causes of this situation?

A: Balance of payment of a country shows that the number of finanacial transaction made between a…

Q: How do automatic adjustment mechanisms operate to correct a deficit in the balance of payments under…

A: Budget Deficit: A budget deficit arises when there is excess expenditure against the revenues. Or…

Q: Discuss how decisions by consumers, firms, and governments affect the balance of payments.

A: The balance of payments(BOP) situation of a country is affected by the decisions taken by different…

Q: What are the major components of trade balance

A: Trade balance, or balance of trade, is the term used to calculate the difference between a country's…

Q: How can a country fix its exchange rate to another? Is it sustainable for them to maintain it fixed?

A: The regime where the government fixes its exchange rate(e) with other country is called ‘Fixed…

Q: Consider the appreciation of a currency. What effects might this have on international companies…

A: International companies: Those companies whose business activities are touching other countries or…

Q: How does a trade deficit affect floating exchange rates?

A: Trade deficit is a situation where the imports of a country exceeds the exports which states that…

Q: Short-run pressures on market exchange rates result mainly from gradual changes in  flows of…

A: This statement is true. It is because the valuation of the exchange rate is determined by the cost…

Q: difference between balance of trade and balance of payments?

A: Money has been evolved since the ancient times and currently money is used as currency. There are…

Q: Explain how exchange rates may impact the performance of international equity investment.

A: Changes in exchange rates may not seem to affect most people in their everyday lives, but indirect…

Q: Which of the following is not included in the current account?a. exports of goodsb. imports of…

A: The balance of payment account of an economy records all the monetary transactions that take place…

Q: What are two ways in which monetary policies and tight budgets allow a fixed exchange rate system to…

A: the AA-DD model to portray the impacts of financial, monetary, and exchange rate policy under an…

Q: Define the term balance of trade.

A: Trade is the exchange of goods and services in return for money.

Q: The longer the "pass-through" period following a devaluation, the faster the desirable balance of…

A: The given statement is true.

Q: Compare and contrast changes in the value of the US Dollar on the trade deficit

A: The trade deficit is a situation where the imports a goods and services of a nation exceeds the…