Which of the following is a key component that determines a country’s primary income within the...
Which of the following is a key component that determines a country’s primary income within the country’s current account?
a. tax rates
b. gifts
c. direct foreign investment
d. international trade
e. none of the options listed
Homework Answers
| A country's current account is divided into 4 components | ||||||
| 1) Trade balance | ||||||
| 2) Net income | ||||||
| 3) Direct transfers | ||||||
| 4) Asset income | ||||||
| The trade balance is the biggest component | ||||||
| of a country's current account. | ||||||
| The trade balance is defined as the total value of exports | ||||||
| minus the total value of the imports. | ||||||
| The trade balance is a key component that determines a | ||||||
| country’s primary income within the country’s current account. | ||||||
| d. international trade | ||||||
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