Question

The difference between money flowing into a country from exports and money leaving the country for imports, plus the flow of money from other factors such as tourism, foreign aid, military expenditures and foreign investments is a country's __________.

Answer 1

Answer:

Balance of Payments

Explanation:

Balance of payments (BOP) is an account that summarizes a country’s total payments and total receipts from international economic transactions within a specific period usually one year. There are 2 basic outcomes from balance of payments. They are:

1. Surplus - It occurs when receipt from export of goods and services is greater than payment for import of goods and services.

2. Deficit - This occurs when receipts from exportation of goods and services is less than payment for importation of goods and services.