Corrections of the Balance of Payments (Grade 12 NSC Matric Economics): Flashcards
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Balance of payments disequilibrium
Balance of payments disequilibrium
Foreign currency outflows continuously differ from inflows
BOP deficit
BOP deficit
More foreign currency leaves than enters
BOP surplus
BOP surplus
Less foreign currency leaves than enters
Currency depreciation effect on exports
Currency depreciation effect on exports
Makes exports cheaper for foreign buyers
Currency depreciation effect on imports
Currency depreciation effect on imports
Makes imports more expensive domestically
Export promotion
Export promotion
Govt initiatives encouraging domestic industries to sell abroad
Import substitution
Import substitution
Encourages domestic production to replace imports
Import tariffs
Import tariffs
Taxes on imported goods making them more expensive
IMF role
IMF role
Provides emergency lending to member nations
Exchange controls
Exchange controls
Regulations restricting access to foreign currency