Group 3 Balance of Payments by Humanities https://padlet.com/BISHumanities/r6rwkque6d6ovhzm Made with charisma en-us 2021-01-12 18:28:19 UTC 2021-01-13 17:31:03 UTC hello@padlet.com What is the Balance of Payments? BISHumanities https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009116 2021-01-12 18:28:19 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009116 What are the different parts of the Balance of Payments? BISHumanities https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009121 2021-01-12 18:28:19 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009121 Why does a current account deficit suggest there will be a financial account surplus? BISHumanities https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009123 Less money being spent on foreign goods/services]]> 2021-01-12 18:28:19 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009123 Is a current account deficit a problem? BISHumanities https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009125 2021-01-12 18:28:19 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009125 Is a financial account surplus a problem? BISHumanities https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009127 2021-01-12 18:28:19 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009127 What does the BOP look like? BISHumanities https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009132 2021-01-12 18:28:19 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009132 HL Why should a current account deficit correct itself in the longer term in a free floating exchange rate system? BISHumanities https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009134 2021-01-12 18:28:19 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080009134 ruari_de_rijk https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080095431 Somewhat.. A current account deficit occurs when a currency is overvalued so more is imported than exported. Many MEDCs operate with large current account deficits, such as the US. ]]> 2021-01-12 18:43:34 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080095431 https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080103578 A record of all transactions between the residents of a country and the residents of all other countries, showing all payments received from other countries (credits), and all payments made to other countries (debits)]]> 2021-01-12 18:45:00 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1080103578 Ruari ruari_de_rijk https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084009482 A current account deficit should correct itself due to an overtime adjustment ]]> 2021-01-13 17:13:52 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084009482 Adham https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084024837 A current account deficit should correct itself over time as because the country is importing more than it is exporting, the value of the currency will depreciate, as it is used less, thus making imports more expensive, and exports cheaper]]> 2021-01-13 17:16:47 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084024837 https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084039887 Not always. A current account deficit means that the economy is importing more than it is exporting. this means that the consumers are consuming more than they produce, which is good for the economy. However, it does have a few problems when kept for a long time. 1. the currency might depreciate as there is a decrease in the demand for it. 2. increased borrowing from abroad, this causes a poor international credit rating which makes it harder to get more loans. 3. higher interest rates, to attract financial investments. 4. contractionary fiscal policies to lower incomes, therefore decreasing imports. 3 and 4 may lead to a recession. 5. sale of domestic assets to make up for the debt, reducing a country's control over their assets.]]> 2021-01-13 17:19:41 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084039887 Milena https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084041969 Low domestic demand has turned into stagflation and low wage growth in the economy.]]> 2021-01-13 17:20:06 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084041969 Ruari ruari_de_rijk https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084056283 Due to increased foreign investment within the country]]> 2021-01-13 17:22:53 UTC https://padlet.com/BISHumanities/r6rwkque6d6ovhzm/wish/1084056283