could a country have a favourable Balance of Trade and an unfavourable Balance of Payments in...

could a country have a favourable Balance of Trade and an unfavourable Balance of Payments in the same year? Why or why not?

Solutions

Expert Solution

No, a country cannot have a favourable Balance of Trade and an unfavourable Balance of Payments in the same year.

Favourable balance of trade means the country exports more than it imports. It means currency flows in more than it goes out of the country. Payments are less than receipts. This leads to favourable balance of payments.

Rahul Sunny answered 1 year ago

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