Balance of Payments (DP IB Economics: HL)

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On the international stage, economists have said that the president must put his efforts into improving export competitiveness by making investments in education and training. Protectionism and intervention are also increasing as policymakers look to reduce imports, manage markets, and promote domestic industries, which has helped to turn Indonesia’s current account deficit to a surplus. However, with a strong export base specialising in coal, gold, and palm oil, the President has been warned not to damage relationships with key trading partners by limiting imports.

Table 3: Cambodian trade balance in goods (US$ billions)

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Several emerging markets, particularly in Latin America, have attracted substantial interest in portfolio investment from global investors. This trend has raised questions about the stability of capital flows and their effect on local financial markets.

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Greece has faced ongoing challenges due to its current account deficit, prompting several policy debates within the government. These discussions are centred on addressing potential long-term consequences for the economy and financial stability.

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The Ministry of Finance in Thailand is conducting an economic review and exploring the relevance of the Marshall-Lerner condition in shaping future trade policies. The outcome of these reviews is expected to inform adjustments to exchange rate policies.

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In the United Kingdom, economists are analysing the recent depreciation of the pound in light of the J-Curve effect. These findings may help inform decisions on how to manage future exchange rate fluctuations and their impact on the economy.