ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A U.S. entrepreneur, invests $50 million to develop a theme park in Malaysia.
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Current account
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Capital/Financial account
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Andre Prenoor, US entrepreneur, invests $50 million to develop a theme park in Malaysia. 3. A Chinese company sells $1 million worth of berets to the US Army.
Detailed explanation-2: -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.
There is 1 question to complete.