Economics 0455 · IGCSE · Current account of balance of payments

Current account of balance of payments — practice question

In India, 70% of the 10 million kilograms of tea produced is exported. The largest buyers are the UK, Japan, and Germany. In 2013, wholesale prices increased by $10\%$ because a strike limited supply. How would these events appear in international trade accounts?

  • Aa credit on the goods and services account for Germany
  • Ba debit on the goods and services account for Japan
  • Ca $10\%$ fall in the balance of the goods and services account for India
  • Da $10\%$ rise in the balance of goods and services account for the UK

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