Global Trade and Integration · Global Markets

Balance of Payments and Exchange Rates

Understanding the financial flows between countries and the mechanisms that determine currency value.

Key Questions

  1. 1How does a persistent current account deficit affect a nation's long term debt?
  2. 2What incentives drive investors to move capital into or out of a country?
  3. 3How does a fluctuating exchange rate impact the competitiveness of exports?

MOE Syllabus Outcomes

MOE: Balance of Payments - JC2MOE: Exchange Rate Policy - JC2
Level: JC 2
Subject: Economics
Unit: Global Trade and Integration
Period: Global Markets

Suggested Methodologies

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