Protectionist policies are government actions created to limit imports. The goal is to support local businesses and improve
Tag: current account
currency appreciation
Currency appreciation occurs when the exchange rate of a country’s currency rises in a floating exchange rate system.
currency depreciation
Currency depreciation happens when the value of a country’s currency decreases compared to other currencies in a floating
balance of trade in goods
The balance of trade in goods, also known as the visible balance or merchandise balance, measures the difference
consequences of current account imbalances
Current account imbalances — whether a surplus or a deficit — have significant consequences for both the domestic
balance of trade in services
The balance of trade in services (also called the invisible balance) is the difference between the value of
causes of current account imbalances
Current account imbalances occur when a country’s total receipts from exports of goods, services, primary income, and secondary
balance of trade in goods and services
The balance of trade in goods and services (also called the trade balance or visible and invisible balance)
secondary income
Secondary income (also called current transfers) is a component of the current account that records one-way, non-reciprocal transfers
primary income
Primary income is a component of the current account that records income earned by residents of one country