Is the balance of payments a problem, Business Economics

Assignment Help:

Is the balance of payments a problem?

A persistent balance of payments shortage is bad when used to finance consumption, but good when financing imports of suitable capital which raise productive capacity.

• Imports of goods for recent consumption satisfy requirements currently but, unlike capital goods, do not raise productive capacity. Simply BoP shortages from importing capital goods can be then arranged.

• Exports. Whole export earnings depend onto both the quantity of exports sold and the price paid for exports. Specified export prices reduce over time, LDCs lose revenue unless they can repeatedly increase export volumes.


Related Discussions:- Is the balance of payments a problem

Differentiate essential and adequate condition for growth, What is the diff...

What is the difference between an essential and adequate condition for growth? Essential and adequate conditions are helpful analytical and evaluative elements. As like exampl

Applied financial econometrics, suppose that you have 150 observations on p...

suppose that you have 150 observations on production and investment and you have estimated the following ADL(3,2)model;

What is argument of advocates of world bank, What is the argument of advoca...

What is the argument of advocates of World Bank in promotion of development? Advocates of the World Bank argue: • Loans and aid alone don’t guarantee development or the

What is employment and unemployment, What is Employment and Unemployment? ...

What is Employment and Unemployment? Employment and Unemployment: Employment: It is the number of people working within the economy. Unemployment: It is the nu

Money and banking, First, explain the concepts of income, wealth and money ...

First, explain the concepts of income, wealth and money and show how each is related to the other. Next, explain the concept of the monetary base and indicate its economic signific

Implementation issues - infrastructure, IMPLEMENTATION ISSUES: Infrast...

IMPLEMENTATION ISSUES: Infrastructure sector, especially economic infrastructure, projects are facing a variety of problems, which are to be addressed in order to realise the

Price elasticity of demand, Aska) Explain why each of the following factors...

Aska) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the c

What are the advantages of informal economy, What are the advantages of inf...

What are the advantages of informal economy? Advantages of the informal sector: • Employment, opportunities and income. • Offers cheap inputs for the formal sector •

Explain natural monopoly and cross elasticity, Question 1 Part A - ...

Question 1 Part A - The following schedule shows the market for oranges. Use this data to answer the questions below. Provide full calculations for all your answers. (i)

Household sector, The prevention of main swings in economic activity can be...

The prevention of main swings in economic activity can be handled most simply by the household sector. Explain why?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd