Factors that create a current account deficit

Factors that create a current account deficit - Factors...

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Factors that create a current account deficit As I was doing my research, I can say that the current account balance may seem to be a mysterious economic concept. However, in countries that are spending a lot more out of the country than they are taking in, the current account is the point at which international economics smash together with political reality. When countries run large deficits, businesses, trade unions, etc. are frequently quick to blame their trading partners and make charges about unfair practices. A deficit then means that the country is importing more goods and services than it is exporting even though the current account also includes net income such as interest and dividends and transfers from out of the country such as foreign aid, which are usually a small portion out of the total. This way, a current account deficit often raises “the protectionists,” which in fact forgetting that a main reason to export is to be able to import think that exports are "good" and imports are "bad."
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Factors that create a current account deficit - Factors...

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