Answer to Question #235557 in Macroeconomics for Samra

Question

What is Balance of Payments? Discusses causes of adverse Balance of Payments in Pakistan?

Answer 1

Balance of payments tends to be a country's accounting based on international transactions within a respective period.

Insecurities within the country may discourage investors from choosing Pakistan as a place to transact. Based on the wars recently witnessed in the country, foreign nations may develop negatively towards Pakistan, thereafter adversely affecting balance of payments within the nation.