Rich countries have deficit in their balance of payments:

Related MCQs

• ------------theory states that countries which are rich in labour will export labour intensive goods and countries which are rich in capital will export capital intensive goods
• If the U.S. faces a balance-of-payments deficit on the current account, it must run a surplus on:
• If there were a balance of payments deficit then in a floating exchange rate system:
• Unlike the balance of payments, the balance of international indebtedness indicates the international:
• If Debit balance in the balance of payment accounts are greater than the Credit balance it leads to
• The U.S. has a balance of trade deficit when its:
• Country A has 100 units of labor and Country B has 200 units of labor. Both countries produce computers and Web pages. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 Assume free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to Web pages will be:
• When each international transaction undertaken by the residents of a country are entered as a debit and credit entry of equal size, into the balance of payments, the method is known as.
• Distinguish between autonomous and accommodating items in the balance of payments.
• On the balance-of-payments statements, merchandise imports are classified in the: