International TradeWhat are the different items making up the current account?Balance of payments has two main components a current account and transactions in a country assets and liabilities account.The first item is balance on goods which corresponds to the balance of visible trade found in the old accounts and as there is split into oil and non oil trade in goods. The next item is balance on services which provides information about the country’s net income from services such as shipping, insurance and finance. These two balances are then added together to give the balance on goods and services. The current account is then completed by adding two further items the total income balance which is made up almost exclusively of the balance on investment income.Why does the UK appear to have a structural problem in relation to its international trade situation?UK has a poor trading performance, especially in exports has been due to its inadequate response to the changing geographical and commodity composition of world trade. The fall in the UK`s share of
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