(a)
In Swaziland’s current account from 2003 to 2007, (i) which component improved continuously, and (ii) which component worsened continuously?
- which component improved continuously? [1]
- which component worsened continuously? [1]
(b)[3]
How did the current account balance move between 2003 and 2007?
(c)
(i) What does comparative advantage mean? (ii) Based on the Central Bank of Swaziland’s report, what conclusion might be drawn about the character of Swaziland’s comparative advantage and the factors that underpin it?
- What does comparative advantage mean? [2]
- Based on the Central Bank of Swaziland’s report, what conclusion might be drawn about the character of Swaziland’s comparative advantage and the factors that underpin it? [4]
(d)[3]
Explain the conditions needed for a depreciation in a country’s currency to increase export revenue.
(e)[6]
Discuss the case for and against Swaziland using tariffs to retaliate when the EU banned imports of Swaziland’s beef.