Foreign Sector — Important Questions

True

The Balance of Payments is a complete record of all transactions, so debits and credits always balance when errors and omissions are accounted for.

Exports of goods and services

The Current Account includes trade in goods, services, income, and transfers.

Factor endowment and specialization

Countries specialize in producing goods they can make efficiently due to natural resources or skills.

Leads to better standard of living

International trade provides access to a wider variety of goods and services, improving living standards.