4.17 - 4.1.9 - International Economics

Name the four separate balances that make up the current account of a nation's balance of payments.

• Net balance of trade in goods, Net balance of trade in services, Net primary income, Net secondary income

• Net capital transfers, Net financial account, Net errors and omissions, Net reserves

• Net exports, Net imports, Net capital inflows, Net capital outflows

• Net investment income, Net portfolio investment, Net direct investment, Net other investment

Which of the following is NOT included in the Net Primary Income from Overseas Assets?

• Profits from investments in other countries

• Interest from overseas assets

• Military grants

• Dividends from overseas investments

Which balance includes transfers such as military aid and overseas aid?

• Net balance of trade in goods

• Net balance of trade in services

• Net primary income

• Net secondary income

List two examples of items included in the Trade Balance in Goods (X-M).

The Trade Balance in Services (X-M) includes banking, insurance, and consultancy.

• True

• False

According to the graph, did the United Kingdom's trade balance with the European Union (EU) generally remain positive or negative from 1999 to 2020?

(a)  

What is the significance of global trade imbalances as mentioned in the key specification content?

• Global trade imbalances can affect economic stability, exchange rates, and international relations.

• Global trade imbalances only impact domestic employment rates.

• Global trade imbalances are irrelevant to international economic policies.

• Global trade imbalances always lead to higher inflation rates.

According to the summary, has the UK run a deficit or surplus on trade in goods and services every year since 1998?

• Deficit

• Surplus

• Balanced trade

• No data available

What was the UK's trade in goods balance (£ billion) in 2020?

(a)  

What was the UK's trade in services balance (£ billion) in 2019?

• 103333

• 85000

• 120000

• 95000