One of the techniques for rectifying a deficit balance of payment is?

Assessment: JAMB UTME - Economics - 1994 Subject: Economics

Question 1 Report

One of the techniques for rectifying a deficit balance of payment is?
Answer Details
A deficit balance of payment occurs when a country is importing more goods and services than it is exporting. One of the techniques to rectify this is through devaluation. Devaluation is the reduction in the value of a country's currency in relation to other currencies. This makes the country's exports cheaper and more attractive to foreign buyers, while also making imports more expensive, thereby reducing the demand for them. The end result is an improvement in the country's balance of payment position.
Read lesson note on Economic Integration (WAEC)
Read lesson note on International Trade And Balance Of Payments (WAEC)
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