Essay Writing Service

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Suggest two policies that may be used to reduce a balance of payments deficit.

A balance of payments deficit is when a country spends more on imports than it earns from exports.One possible policy could be to increase spending on education and training. This will increase the quality of goods and services produced in Britain, which would increase the value of exports. There are however time lags involved as it would be a while before the affected students advance through school and reach the workforce.Another policy is to introduce tariffs on imported goods. This makes them more expensive so less will be bought, reducing imports. However this may backfire if other countries retaliate by placing tariffs on goods from Britain, which would in turn reduce British exports.Overall, spending on education is likely to be the better policy. Although it takes a while to come into effect it cannot result in trade wars. It will instead result in a better educated population, giving wide ranging benefits including better productivity.



Most Used Categories

Recommendation
EssayHub’s Community of Professional Tutors & Editors
Tutoring Service, EssayHub
Professional Essay Writers for Hire
Essay Writing Service, EssayPro
Professional Custom
Professional Custom Essay Writing Services
In need of qualified essay help online or professional assistance with your research paper?
Browsing the web for a reliable custom writing service to give you a hand with college assignment?
Out of time and require quick and moreover effective support with your term paper or dissertation?