ECONOMICS
BALANCE OF PAYMENTS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
rising UK national income
|
|
|
UK prices rising more slowly than prices in other countries
|
|
|
households saving more of their income
|
|
|
the external value of Sterling decreases
|
Detailed explanation-1: -Imports are subtracted in the national income identity because imported items are already measured as a part of consumption, investment and government expenditures, and as a component of exports. This means that imports have no direct impact on the level of GDP.
Detailed explanation-2: -United Kingdom services export is 342, 744, 849, 664.72 in BoP, current US$ and services import is 204, 823, 611, 490.15 in Bop, current US$. United Kingdom exports of goods and services as percentage of GDP is 27.37% and imports of goods and services as percentage of GDP is 27.72%.
Detailed explanation-3: -The UK generally imports more than it exports meaning that it runs a trade deficit. A deficit of £230 billion on trade in goods was offset by a surplus of £145 billion on trade in services in 2022. The overall trade deficit was £85 billion in 2022.
Detailed explanation-4: -In 2022, Germany was the United Kingdom’s main import partner when it came to trade in goods and accounted for eleven percent of all UK goods imported. In the same year, 10.9 percent of goods imported into the UK were from China, with a further 9.6 percent from the United States.