Japan – balance of payments revision

This article shows that Japan’s current account surplus declined in April for the fourteenth consecutive month but still holds a positive trade balance. Click read more for some GCSE style questions relating to the current account.

1. Explain what is meant by the current account. (2 marks)

2. State the UK’s top three trading partners. (3 marks)

3. Explain one negative consequence of a balance of payments deficit (3 marks)

4. A current account deficit on the balance of payments should be reduced by imposing tariffs on foreign countries. Do you agree with this statement? Give reasons for your answer (10 marks)