4 marksBalance of Payments and Exchange Rates

CSEC Economics · May/June 2010 · Paper 2 · Question 3(d)

Explain TWO ways in which devaluation can impact the small, open economies of the Caribbean.

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Other parts of this question

3(a)Define the term 'comparative advantage'.[2 marks]
3(b)List THREE reasons why countries trade.[3 marks]
3(c)Discuss TWO problems that can arise with the balance of payments of non-oil-producing Caribbean countries as a result of rising oil prices.[6 marks]

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