✨HEYA MATE!! HELP ME WITH THIS QUES.✨
✨UNDERUNDERDEVELOPED COUNTRIES EXPORT PRIMARY PRODUCTS AND IMPORT SECONDARY PRODUCTS.THIS LEADS TO.
a) BALANCE OF PAYMENT SURPLUS
b) BALANCE OF PAYMENT DEFICIT
c) ZERO BALANCE OF PAYMENT
d) NONE OF THE ABOVE
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a)A balance of payments surplus means the country exports more than it imports. It provides enough capital to pay for all domestic production.
b)A balance of payments deficit means the nation imports more commodities, capital and services than it exports. It must take from other nations to pay for their imports.
c)The sum of all transactions recorded in the balance of payments must be zero, as long as the capital account is defined broadly. The reason is that every credit appearing in the current account has a corresponding debit in the capital account, and vice-versa.
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