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1 markBalance of Payments and Exchange Rates

CSEC Economics · May/June 2012 · Paper 2 · Question 6(d)(v)

By what name will the transaction 'An American citizen sets up a company in the capital of St Lucia' be known in the Balance of Payments Account of St Lucia?

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  1. 6(a)(i)Define the term 'Common external tariff' as it relates to international trade.[2 marks]
  2. 6(a)(ii)Define the term 'Import quota' as it relates to international trade.[2 marks]
  3. 6(b)Identify THREE reasons why governments adopt protectionist measures.[3 marks]
  4. 6(c)Explain, with examples, TWO items that would be found in EACH of the following sections of the Balance of Payments Account: (i) Current Account (ii) Capital…[8 marks]
  5. 6(d)(i)By what name will the transaction 'A St Lucian travels to France on holiday' be known in the Balance of Payments Account of St Lucia?[1 mark]
  6. 6(d)(ii)By what name will the transaction 'British visitors attend the 20/20 cricket match at the Beausejour Cricket Ground in St Lucia' be known in the Balance of…[1 mark]
  7. 6(d)(iii)By what name will the transaction 'A St Lucian buys shares in Microsoft in the United States of America' be known in the Balance of Payments Account of St…[1 mark]
  8. 6(d)(iv)By what name will the transaction 'Vanguard Atlantic earns US…[1 mark]

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