A Japanese company sets up a factory in the UK to serve both the UK market and the market in the rest of Europe. What would probably be the long-run effect on the UK’s balance of trade in goods and on its current balance?
- Abalance of trade in goods: improve; current balance: improve
- Bbalance of trade in goods: improve; current balance: uncertain
- Cbalance of trade in goods: worsen; current balance: improve
- Dbalance of trade in goods: worsen; current balance: uncertain