6 Questions
What does the term 'trend of trade' refer to?
The general direction in which a country's imports and exports are moving over time
What can be inferred from a positive trend of trade for a country?
The country's economy is growing and becoming more competitive in the global market
How can a negative trend of trade impact a country's economy?
It may lead to a decrease in domestic production and employment
How does a deficit in the balance of payments affect a country's currency value?
It may cause the country's currency to depreciate
What does the financial account of the balance of payments measure?
Foreign direct investment and portfolio investment
What does a surplus in the balance of payments indicate?
The country is exporting more than it is importing
Test your knowledge of trade trends with this quiz. Explore the concept of 'trend of trade' and understand its implications for a country's economy. Learn about the positive and negative effects of trade trends and their impact on international trade.
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