(a)[2]
In Swaziland’s current account from 2003 to 2007,
- which component showed steady improvement? [1]
- which component showed continuous deterioration? [1]
(b)[3]
How did the current account balance alter between 2003 and 2007?
(c)[6]
- How is comparative advantage defined? [2]
- From the Central Bank of Swaziland’s report, what can be inferred about the type of comparative advantage Swaziland has and the factors that support it? [4]
(d)[3]
Explain the conditions necessary for the depreciation of a country’s currency to increase its export revenue.
(e)[6]
Discuss the case for and against using tariffs by Swaziland as retaliation after the EU banned imports of Swaziland’s beef.