componen if inflation is higher in country A than in country B, and the exchange rate between the two countries is fixed what is likely to happen to the trade balance between two countriest of the current account of balance of payment
Answers
In news:
The PM has announced the Atma-nirbhar Bharat Abhiyan (or Self-reliant India Mission) and said that in the days to come the government would unveil the details of an economic package — worth Rs 20 lakh crore or 10% of India’s GDP in 2019-20 — aimed towards achieving this mission.
Atmanirbhar Bharat: Special Package:
PM has announced a special economic package and gave a clarion call for Self-reliant India.
The package will provide a much-needed boost towards achieving self-reliance.
This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10% of India’s GDP.
The package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.
Pillars of “Atma Nirbhar Bharat”
1. Economy- quantum jump not incremental change
2. Infrastructure- for modern India
3. System- technology driven for 21st century
4. Demography- vibrant demography as world’s largest democracy
5. Demand- optimize demand and supply chain in the economy
In news:
The PM has announced the Atma-nirbhar Bharat Abhiyan (or Self-reliant India Mission) and said that in the days to come the government would unveil the details of an economic package — worth Rs 20 lakh crore or 10% of India’s GDP in 2019-20 — aimed towards achieving this mission.
Atmanirbhar Bharat: Special Package:
PM has announced a special economic package and gave a clarion call for Self-reliant India.
The package will provide a much-needed boost towards achieving self-reliance.
This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10% of India’s GDP.
The package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.
Pillars of “Atma Nirbhar Bharat”
1. Economy- quantum jump not incremental change
2. Infrastructure- for modern India
3. System- technology driven for 21st century
4. Demography- vibrant demography as world’s largest democracy
5. Demand- optimize demand and supply chain in the economy this account will be in the image to be able and then the image below is the image below is the value you are interested 6
Country A will have a Trade Deficit and Country B has a Trade Surplus.
Explanation:
Country A has higher inflation than Country B.
- It is advantageous for country B to export goods to country A; since the exchange rate is fixed.
- Similarly, it is advantageous for country A to import goods from country B.
- On the other hand, it would be costly for country A to export goods to country B.
- Thus, country A will have a trade deficit because it will import more goods than it exports from country B.
- Country B will import fewer goods than it exports to Country A. Therefore, Country B has a trade surplus.