(A)If,for Every Debit or Credit in the Balance of Payments,an

question 29

Essay

(a)If,for every debit or credit in the balance of payments,an offsetting credit or debit,respectively,of an equal amount is entered,how can a nation have a deficit or a surplus in the balance of payments?
(b)How is a deficit of a surplus in the balance of payments measured?
(c)Why are the concepts and measurement of deficit or surplus not appropriate under a flexible exchange rate system?
(d)What is the difference between a disequilibrium and a deficit in the balance of payments?

---

Definitions:

Plant Manager

A primary role responsible for overseeing all daily operations of a manufacturing or production facility, ensuring efficiency, safety, and profitability.

Warehousing

The process of storing goods in a large building or space prior to their distribution to retail outlets, customers, or other destinations.

Single Area

Focusing or concentrating on one particular geographic, professional, or subject matter domain exclusively.

Functional Manager

A manager responsible for a specific business function or department within an organization, such as marketing or finance.