Economics 0455 · IGCSE · Current account of balance of payments

Current account of balance of payments — practice question

What is most likely to happen if South Korea sets up a factory in Switzerland that makes a profit?

  • ASouth Korea’s imports of goods will decrease.
  • BSouth Korea’s investment income will increase.
  • CSwitzerland’s trade balance in goods will worsen.
  • DSwitzerland’s trade balance in services will improve.

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