14 The international economy Flashcards
1
Q
Balance of payments
A
a record of all financial transactions taking place between the UK and any other country
2
Q
Three sections in which balance of payments are divided into
A
- capital account
- financial account
- current account
3
Q
Capital account
A
It includes the transfers of ownership of assets across borders
4
Q
Financial account
A
measures the flows of financial capital into and out of the country
5
Q
Current account consist of
A
- trade in goods
- trade in services
- primary income
- secondary income
6
Q
Primary income
A
flows of income from investments abroad less flows of income from foreign investments located in the UK
7
Q
Secondary income
A
transfers of money received in the UK from abroad less transfers of money paid by the UK overseas
8
Q
Factors determining exports/imports
A
- GDP
- productivity
- inflation
- exchange rate
- trade barrier (imports only)
