Maths
Biology
Chemistry
English Lang.
History
Energy transfers (a2 only)
Infection and response
Homeostasis and response
Responding to change (a2 only)
Cell biology
Biological molecules
Organisation
Substance exchange
The control of gene expression (a2 only)
Bioenergetics
Genetic information & variation
Inheritance, variation and evolution
Genetics & ecosystems (a2 only)
Ecology
Cells
Show all topics
World war two & the holocaust
1l the quest for political stability: germany, 1871-1991
Inter-war germany
2d religious conflict and the church in england, c1529-c1570
1c the tudors: england, 1485-1603
The cold war
Medieval period: 1066 -1509
Britain & the wider world: 1745 -1901
2m wars and welfare: britain in transition, 1906-1957
1f industrialisation and the people: britain, c1783-1885
2j america: a nation divided, c1845-1877
2n revolution and dictatorship: russia, 1917-1953
The fight for female suffrage
World war one
Britain: 1509 -1745
Show all topics
xiyu
@illxiyutheretmr
·
107 Followers
Follow
The Balance of Payments is a crucial macroeconomic objective, measuring a country's economic transactions with the rest of the world. It consists of trade in goods, services, primary income, and secondary income. The UK often experiences a current account deficit, reflecting challenges in competitiveness and economic structure.
06/06/2023
635
Several cyclical factors can impact the balance of payments:
Example: A strong currency makes exports more expensive, potentially worsening the trade balance.
Trade Cycle: Economic fluctuations can influence import and export patterns.
Shifts in Aggregate Demand: Increases in components of aggregate demand can lead to higher imports.
Price Changes in Export Markets: Fluctuations in global prices affect export revenues.
Wealth Effect: As individuals become wealthier, they may purchase more imported goods.
The Balance of Payments (BoP) is a key macroeconomic objective that measures a country's economic transactions with the rest of the world. It is typically expressed as a percentage of GDP to indicate its relevance to the economy.
Definition: The balance of payments is balanced when the combined receipts from selling goods and services abroad plus return on investments abroad equals the combined expenditure on imports of goods and services plus investment income going abroad.
The balance of payments consists of four main components:
Highlight: The UK often experiences a current account deficit, particularly in trade in goods, due to deindustrialization and reliance on imports.
Example: The UK's financial services sector contributes positively to the balance of payments, generating around £10 billion in profit annually.
Several factors contribute to the UK's persistent current account deficit:
Definition: Deindustrialization is measured by the ratio of people employed in manufacturing to total employment, or manufacturing output as a percentage of GDP.
Lack of productivity: The UK's reliance on imported goods has resulted in lower productivity compared to other countries.
High inflation rates: This leads to decreased competitiveness in international markets.
Labour inflexibility: The UK's labour market struggles to adapt quickly to new job requirements.
Insufficient investment: Low investment in machinery and technology hampers productivity growth.
Highlight: The UK's tendency to consume more than save reduces available funds for business investments.
This component covers exports and imports of visible and finished goods, such as cars and computers. The UK typically has a deficit in this area due to:
Highlight: Deindustrialization has led to a decline in the UK's manufacturing industry, resulting in higher imports of goods from other countries.
The UK performs well in this sector, often running a current account surplus. Key service areas include:
Example: The UK's financial sector provides services such as commissions, debt management, and investment services to foreign clients.
This component represents the net flow of profits, interest, and dividends from investments in other countries, as well as remittance flows from migrant workers.
Secondary income includes net money transfers to international organizations, foreign aid, and other commitments.
Highlight: The UK's commitment to foreign aid (0.75% of GDP) contributes to the current account deficit.
The graph provided shows the UK's current account balance as a percentage of GDP from 1970 to 2021, illustrating the persistent deficit.
A current account deficit can have significant implications for an economy:
Highlight: Economists typically consider a deficit of 5% of GDP concerning. The UK's current deficit is around 2.5%.
Understanding these factors is crucial for A Level Economics students studying macroeconomic objectives and the UK balance of payments. This knowledge forms a key part of Theme 2: Macroeconomics in the Edexcel A Level Economics curriculum.
5
256
12/13
june 2020 economics paper 1 completed paper
edexcel a micro paper
7
505
12/13
specimen economics paper 2 completed paper
edexcel a macro paper
9
207
12/13
june 2022 economics paper 2 completed paper
edexcel a macro paper
12
131
13
Notes C2 analysis and strategy
It has loads of revision notes and exam questions to practice!
18
294
13
Balance Of Payments Notes
Year 2 Macro Revision Notes
7
213
12/13
june 2019 economics paper 1 completed paper
edexcel a micro paper
Average app rating
Pupils love Knowunity
In education app charts in 12 countries
Students have uploaded notes
iOS User
Philip, iOS User
Lena, iOS user
xiyu
@illxiyutheretmr
·
107 Followers
Follow
The Balance of Payments is a crucial macroeconomic objective, measuring a country's economic transactions with the rest of the world. It consists of trade in goods, services, primary income, and secondary income. The UK often experiences a current account deficit, reflecting challenges in competitiveness and economic structure.
Several cyclical factors can impact the balance of payments:
Example: A strong currency makes exports more expensive, potentially worsening the trade balance.
Trade Cycle: Economic fluctuations can influence import and export patterns.
Shifts in Aggregate Demand: Increases in components of aggregate demand can lead to higher imports.
Price Changes in Export Markets: Fluctuations in global prices affect export revenues.
Wealth Effect: As individuals become wealthier, they may purchase more imported goods.
The Balance of Payments (BoP) is a key macroeconomic objective that measures a country's economic transactions with the rest of the world. It is typically expressed as a percentage of GDP to indicate its relevance to the economy.
Definition: The balance of payments is balanced when the combined receipts from selling goods and services abroad plus return on investments abroad equals the combined expenditure on imports of goods and services plus investment income going abroad.
The balance of payments consists of four main components:
Highlight: The UK often experiences a current account deficit, particularly in trade in goods, due to deindustrialization and reliance on imports.
Example: The UK's financial services sector contributes positively to the balance of payments, generating around £10 billion in profit annually.
Several factors contribute to the UK's persistent current account deficit:
Definition: Deindustrialization is measured by the ratio of people employed in manufacturing to total employment, or manufacturing output as a percentage of GDP.
Lack of productivity: The UK's reliance on imported goods has resulted in lower productivity compared to other countries.
High inflation rates: This leads to decreased competitiveness in international markets.
Labour inflexibility: The UK's labour market struggles to adapt quickly to new job requirements.
Insufficient investment: Low investment in machinery and technology hampers productivity growth.
Highlight: The UK's tendency to consume more than save reduces available funds for business investments.
This component covers exports and imports of visible and finished goods, such as cars and computers. The UK typically has a deficit in this area due to:
Highlight: Deindustrialization has led to a decline in the UK's manufacturing industry, resulting in higher imports of goods from other countries.
The UK performs well in this sector, often running a current account surplus. Key service areas include:
Example: The UK's financial sector provides services such as commissions, debt management, and investment services to foreign clients.
This component represents the net flow of profits, interest, and dividends from investments in other countries, as well as remittance flows from migrant workers.
Secondary income includes net money transfers to international organizations, foreign aid, and other commitments.
Highlight: The UK's commitment to foreign aid (0.75% of GDP) contributes to the current account deficit.
The graph provided shows the UK's current account balance as a percentage of GDP from 1970 to 2021, illustrating the persistent deficit.
A current account deficit can have significant implications for an economy:
Highlight: Economists typically consider a deficit of 5% of GDP concerning. The UK's current deficit is around 2.5%.
Understanding these factors is crucial for A Level Economics students studying macroeconomic objectives and the UK balance of payments. This knowledge forms a key part of Theme 2: Macroeconomics in the Edexcel A Level Economics curriculum.
Economics - june 2020 economics paper 1 completed paper
edexcel a micro paper
5
256
0
Economics - specimen economics paper 2 completed paper
edexcel a macro paper
7
505
0
Economics - june 2022 economics paper 2 completed paper
edexcel a macro paper
9
207
1
Business - Notes C2 analysis and strategy
It has loads of revision notes and exam questions to practice!
12
131
0
Economics - Balance Of Payments Notes
Year 2 Macro Revision Notes
18
294
3
Economics - june 2019 economics paper 1 completed paper
edexcel a micro paper
7
213
0
Average app rating
Pupils love Knowunity
In education app charts in 12 countries
Students have uploaded notes
iOS User
Philip, iOS User
Lena, iOS user
