BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
merchandise export sales
|
|
|
transportation
|
|
|
return on capital invested abroad
|
|
|
money spent by foreign tourists
|
|
|
money spent on foreign economic aid
|
Detailed explanation-1: -Note. A balance of payments deficit means the country imports more goods, services, and capital than it exports. It must borrow from other countries to pay for its imports. It’s like taking out a school loan to pay for education.
Detailed explanation-2: -The U.S. balance of payments accounts are a quarterly statistical summary of transactions between U.S. residents and nonresidents organized along the lines of the broad categories requested by the IMF. The three major categories are the current account, the capital account, and the financial account.
Detailed explanation-3: -Measuring the current account A deficit then means that the country is importing more goods and services than it is exporting-although the current account also includes net income (such as interest and dividends) and transfers from abroad (such as foreign aid), which are usually a small fraction of the total.
Detailed explanation-4: -There are three components to the current account – the ‘trade balance’, ‘primary income balance’ and ‘secondary income balance’. In economic analysis or commentary, most attention is usually given to the trade balance, which records the difference between the value of our exports and imports of goods and services.