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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can Nations not being able to Compete Internationally lead to a Current Account Deficit?

Author: eric_galvao



Answer:

-Nations that can’t Compete well will see Exports tank -Maybe because of Lower Cost of Productions in other Nations, itself can come from Structual Probems [Immobility of Labour] Better Technology making Production more Efficient -Stronger Currencies will make Goods more Expensive for Foreign Buyers, while making Imports Cheaper -Inflation increasing means Exports will fall as it bcomes Expensie, while Imports will Rise as its becomes more Viable than Domestic Products


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