A selection of revision notes on the balance of payments

Data on the net value of trade in goods and services and incomes from foreign investments can often provide revealing insights into the macroeconomic performance of countries. This blog provides a selection of our blogs and revision notes on aspects of the balance of payments for different countries published here on Tutor2u during the last twelve months.

AS Specification

*Students should understand that the current account comprises trade in goods, trade in services, investment income and transfers.
*They should understand the meaning of a deficit and a surplus on current account and how the strengths (e.g. an improvement in labour productivity) and weaknesses (e.g. a rise in the rate of inflation) of the domestic economy may impact on the balance of payments on current account.

A2 Specification

* Students should know the difference between the current and capital and financial accounts on the UK balance of payments.
* The nature and significance of both short-term and long-term international capital flows should be understood.
* An understanding of the importance of the City of London to the trade in financial services should be conveyed to students
* Students should understand the possible significance of deficits and surpluses for an individual economy.
* They should also understand the possible implications for the global economy of a major economy or economies with imbalances deciding to take corrective action.
* Students should also be able to analyse and evaluate measures which may be taken to deal with balance of payments deficits or surpluses.

Select the revision notes and blogs from those listed below