Describe the different accounts of the Current Account of the balance of payments.
*1. Elaborate on the Factor Endowments Theory. This theory is based on the Comparative Advantage reason for trade, which stems from cost. *2. Expound on the Economies of Scale theory of Paul Krugman, as a reason for trade, which also relates to cost. *3. Analyze the reasons China has a twin surplus. What are the […]