A company from Japan sets up a factory in the UK so that it can provide goods for both the UK market and markets elsewhere in Europe. What is likely to be the long-run effect on the UK’s balance of trade in goods and its current account balance?
- Abalance of trade in goods: improve / current account balance: improve
- Bbalance of trade in goods: improve / current account balance: uncertain
- Cbalance of trade in goods: worsen / current account balance: improve
- Dbalance of trade in goods: worsen / current account balance: uncertain