why is it detrimental for a nation to have negative balance of payments?
Answers
A country's balance of payments tells you whether it saves enough to pay for its imports. A balance of payments deficit means the country imports more goods, services and capital than it exports. It must borrow from other countries to pay for its imports. In the short-term, that fuels the country's economic growth.
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Explanation:
1. Negative balance of payments means that for a nation, the value of import is much more than the value of export i.e. the country spends much more on buying imported goods from other nations than selling its own products to the other countries.
2. This leads to a loss of the economy and expenditure of the economic reserves, which is really detrimental for a nation.
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https://brainly.in/question/13864741