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Circumstances a nation may realize surplus balance payments
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[QUOTE="Activator230822, post: 286952, member: 88192"] The nation may realize surplus in its balance payments through the following circumstances. When the country exports highly valued finished products-- the demand of such products is high and they fetch higher prices in the international market. When the nation imports mainly lowly valued primary goods. These cheap imports are converted into finished goods hence earning profits from international trade. When the nation aggressively promotes it's exports. This will subsequently create more markets for exporting goods thus increasing the country's earnings. When the nation devalues it's currency-- This makes imports more expensive facing local consumers to buy local produced goods while exports becomes cheaper and are sold in large volumes. When the country enjoys favourable economic order-- The country may be able to influence the world market prices to favour it's exports hence becoming more competitive. When the country have adequate Access to the capital and technology-- This makes the nation to have a highly developed manufacturing and processing sector. [/QUOTE]
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Circumstances a nation may realize surplus balance payments
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