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

What is success effectiveness of multi-national companies, What is the succ...

What is the success effectiveness of multi-national companies (transnationals) in the promotion of development? TNC FDI success into promoting development: • Introduces mode

Samantha Hill, Problem-solving question: Use the following data for a firm’...

Problem-solving question: Use the following data for a firm’s output at various levels of employment (L) to calculate: a) its marginal physical product of labor (MPPL) schedule; (

Determine the best response functions of the firm, 1. Consider the market w...

1. Consider the market where there is product differentiation with two firms. The firms are choosing prices p1 and p2 and have demands given by q1 = 40 - 0.5 p1 + p2 q2 = 60

Asking, B. Complete the following table

B. Complete the following table

Consumer behavior, what makes other individuals save more than others

what makes other individuals save more than others

Quantity of salt demanded, why does the quantity of salt demanded tend to b...

why does the quantity of salt demanded tend to be unresponsive to changes in its price?

Expectated measure of damage, Mr. M enters into a contract with Mr. R under...

Mr. M enters into a contract with Mr. R under which R agrees to build a model railroad for $200. The value of the model railroad to M is $300. Expecting that the model railroad wil

Demand, The amount of a good or service that a consumer is willing and able...

The amount of a good or service that a consumer is willing and able to buy at each particular price

Entrepreneurship and economic growth, Write a book review of a book of your...

Write a book review of a book of your choice (chosen from the list of course reference literature) by either Joseph A. Schumpeter or Israel Kirzner about entrepreneurship and macro

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