14. The International Economy: Globalisation And International Trade

Question 1

Balance of payments

Answer 1

A record of all currency flows into and out of a country in a particular time period

Question 2

The three main accounts of the balance of payments

Answer 2

. The current account
. The capital account
. The financial account

Question 3

Current account

Answer 3

Measures all the currency flows into and out of a country in a particular time period in payment for exports and imports of goods and services, together with primary and secondary income flows (previously known as income flows and transfers).