Lesson 59 Flashcards
1
Q
Visible imports/exports
A
Are products you can physically see
2
Q
Invisible imports/exports
A
Are products you can’t physically see
3
Q
Shortened way of saying Balance of Payments?
A
BOP
4
Q
What is BOP?
A
The record of all trade
between one country and the rest of the world
in a particular period
5
Q
Terms of trade
A
The rate at which one country’s goods exchange for another
6
Q
How is ‘terms of trade’ measured?
A
Measured using an index of export prices / index of import prices (x100)
7
Q
CA?
A
Current Account
8
Q
X?
A
Exports
9
Q
M?
A
Imports
10
Q
NY?
A
Net income from abroad
11
Q
NCT?
A
Net currency transfers
e.g. GBP transferred to SEK
12
Q
Current Account equation?
A
CA = (X - M) + NY + NCT
13
Q
FA?
A
Financial Account
14
Q
BOP equation?
A
CA + FA
15
Q
FDI?
A
Foreign direct investments
