Balance of payments adjustments can happen when a country has a trade surplus with other countries falls behind repaying its international debts has either a trade surplus or trade deficit with other countries has a trade deficit with other countries

Balance of payments adjustments can happen when a country has a trade surplus with other countries falls behind repaying its international debts has either a trade surplus or trade deficit with other countries has a trade deficit with other countries

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter18: International Trade And Finance

Section: Chapter Questions

Problem 11SQ

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Question

Balance of payments adjustments can happen when a country

has a trade surplus with other countries

falls behind repaying its international debts

has either a trade surplus or trade deficit with other countries

has a trade deficit with other countries

renegotiates its international debts

Definition Definition Situation in which a country spends more on imports than it makes through exports. When a trade deficit exists, net exports will be negative. Trade Deficit = (Imports) - (Exports)

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