Balance of payment problems arise if a country's imports are more than exports. The balance of payments is a record of all financial transactions between a country and the rest of the world over a period of time. It includes transactions related to trade in goods and services, income flows, and financial flows.
If a country's imports exceed its exports, it means that the country is spending more on foreign goods and services than it is earning from selling its own goods and services to foreign countries. This creates a trade deficit, which is a major cause of balance of payments problems. When a country has a trade deficit, it must borrow from foreign countries or sell assets to finance the deficit, which can lead to a buildup of foreign debt.
Currency devaluation can also contribute to balance of payments problems by making imports more expensive and exports cheaper. However, it is not the only factor that affects the balance of payments. Additionally, the relative proportion of visible and invisible exports does not directly affect the balance of payments, but it can influence the balance of trade and the overall performance of the economy. Therefore, the correct answer is that balance of payment problems arise if a country's imports are more than exports.