Question 2 A. Define Balance of Payments (BOP). B. Use the following data (in billions of dollars for the given year) to

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Question 2 A Define Balance Of Payments Bop B Use The Following Data In Billions Of Dollars For The Given Year To 1 (49.06 KiB) Viewed 37 times

Question 2 A. Define Balance of Payments (BOP). B. Use the following data (in billions of dollars for the given year) to calculate the: 719 279 Export of goods Import of goods Export of services Import of services 1145 210 i. balance of trade (2 marks) (4 marks) ii. balance on the current account. Interpret the result. C. Jamaica has, for many years, been experiencing a deficit on its current account. TWO (2) factors that could have contributed to this ongoing problem. Describe (6 marks) D. Recommend TWO (2) measures the Jamaican government could take to curb its BOP deficit. (6 marks) (Total 20 marks) Question 3 COFFEE COUNTRY Jamaica TEA 5 10 United States of America 50 20 A. Which country has the absolute advantage in the production of both goods? (4 marks) B. Which has the comparative advantage in the production of both goods? (6 marks) C. Protectionist policies are beneficial to all countries of the world therefore all countries should ensure that such policies are instituted. Assess the validity of this statement. (10 marks) (Total 20 marks) (2 marks)