Balance of Payments (DP IB Economics: HL)

Extract C, Paragraph 2

Singapore's external economic relationships have evolved significantly over the past year. The country's financial markets have attracted substantial overseas investment, while its port facilities continue to generate significant service income. Government statistics show various international monetary flows, including corporate profit transfers and development assistance payments.

Poland's international economic activity includes various government transactions with other nations. Recent data shows movements in development aid, intellectual property payments, and migrant remittances. The central bank monitors these flows to understand their impact on the nation's external position.

Extract A, Paragraph 2

Bangladesh's textile industry has seen changing international trade patterns over the past year. The central bank reports significant movements in the domestic currency value, while manufacturers note shifts in their export competitiveness. Industry analysts are studying how these currency changes affect trade flows.

Extract C, Paragraph 3

Morocco's financial sector has experienced changing investment patterns as global market conditions evolve. International investors respond to relative returns between countries, while domestic firms seek overseas funding opportunities. These capital flows influence the dirham's external value.

Extract E, Paragraph 4

The Mexican economy has recorded current account deficits for five consecutive years. The peso has shown downward pressure in currency markets, while government borrowing costs have increased. International rating agencies are reviewing Mexico's credit status as external debt levels rise.

Extract A, Paragraph 2

Ecuador's finance ministry is considering different policy responses to address its widening current account deficit. Officials debate whether to let market forces adjust naturally or to implement specific measures. Manufacturing associations argue for direct intervention to protect domestic industries.

Extract C, Paragraph 2

Uganda's currency has depreciated by 15% against its major trading partners. Initial trade figures show the trade balance has changed significantly, though the central bank projects eventual improvements. Local manufacturers are adjusting their international pricing strategies, while importers report changing purchase patterns.

Extract B, Paragraph 1

Bolivia's mining exports have faced significant price changes in international markets following its currency depreciation. While export volumes remain stable, import costs have changed substantially. Economic analysts debate the timing of trade balance improvements.

South Korea's manufacturing sector has generated consistent trade surpluses over the past five years. Domestic firms report strong profit growth, while new investment in production capacity continues to expand. However, some economists express concern about the economy's increasing reliance on export markets.