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4.2.6 Causes of surpluses and deficits

Card 1 of 20

How does international competitiveness affect a country's current account?

A

Shared inflation leaves relative prices largely unchanged.

B

Better competitiveness raises exports and cuts imports, moving the account towards surplus.

C
  • UK exports become dearer for foreign buyers
  • Imports become cheaper in pounds
  • Export sales fall and import spending rises
D

Its products become dearer relative to rivals, reducing exports and increasing imports.

Card 1 of 20

4.2.6 Causes of surpluses and deficits Flashcards

  1. GCSE
  2. /Economics
  3. /4.2.6 Causes of surpluses and deficits

20 flashcards on OCR GCSE Economics 4.2.6 Causes of surpluses and deficits: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.

Flashcards