Economics 0455 · IGCSE · Current account of balance of payments

Current account of balance of payments — practice question

A country brings in oil from abroad, and this oil is then used to produce and distribute goods. The country has also seen higher incomes, causing a substantial rise in the demand for goods, some of which are imported. What is likely to occur to the country’s balance of trade in goods (visible) and to the price of oil?

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