Chapter 36: Balance of Payments

1. Summarise the 4 ways that the world economy is becoming more interconnected. 

-proportion of an economy's output that is traded internationally is growing 

-increasing ownership of assets by economic actors 

-increasing numbers of migration from one country to another 

-faster sharing of technology between countries 

1. What are the 2 components of balance of payments? 

-the current account 

-capital and financial accounts 

1. What is the difference between trade in visibles and trade in invisibles? 

Trade in visibles is the trade in raw materials and sem-manufactured goods while trade in invisibles is the trade in services such as transport and financial services. 

1. What is the difference between primary and…