Скачать с ютуб Causes of Deficit in Balance of Payments | Macroeconomics | Ecoholics в хорошем качестве

Causes of Deficit in Balance of Payments | Macroeconomics | Ecoholics

1. Economic Factors 2. Political Factors 3. Social Factors. Deficit in the balance of payments may be caused due to number of factors. 1. Economic Factors: (i) Developmental activities: Developing countries depend on developed nations for supply of machines, technology and other equipment. This leads to increased levels of imports, thereby, resulting in a deficit in the BOP account. (ii) High rate of inflation: When there is inflation in the domestic economy, foreign goods become relatively cheaper as compared to domestic goods. It increases imports which causes a deficit in the BOP. (iii) Cyclical fluctuations: When the domestic economy is going through a phase of boom, then domestic production may be unable to satisfy the domestic demand. It leads to a deficit in BOP, due to increase in imports. (iv) Change in Demand: Fall in demand for country’s goods in the foreign markets leads to fall in exports and it adversely affects the balance of payments. (v) Import of Services: Underdeveloped countries import services from developed countries for which, they have to pay huge amounts of money. It leads to a deficit in the BOP. 2. Political Factors: (i) Political Instability: Political instability may lead to large capital outflows and reduce the inflows of foreign funds, thus, creating disequilibrium in the BOP. (ii) Political disturbances: Frequent changes in the government, inadequate support to the government in parliament also discourage inflows of capital. This leads to a deficit due to higher outflows than inflows. 3. Social Factors: (i) Demonstration Effect: When the people of underdeveloped countries come in contact with those of advanced countries, they start adopting the foreign pattern of consumption. Due to this reason, their imports increase and it leads to an adverse balance of payments for underdeveloped country. (ii) Change in tastes, preferences, fashion and trends: An unfavorable change for the domestic goods leads to a deficit in the balance of payments. Ecoholics is the largest platform for economics. Download our app: http://ecoholics.in/mobile-app/ Visit our website for further information and resources: http://ecoholics.in/ To Subscribe for Courses - https://subscription.ecoholics.co.in/ Reach out to us on Whatsapp for further information: https://wa.me/917880107880 If you’re preparing for competitive exams like UPSC IES, RBI DPER or UGC NET then Ecoholics is the one-stop destination for all your learning needs. Study economics the smart way and get an in-depth understanding of this dynamic subject with our holistic approach. Our team of expert faculties help you polish your knowledge and provides you with one-on-one mentorship and doubt-clearing sessions, so you leave no stone unturned when it comes to your preparation. By signing up with us, you can access our live classes, video lectures, test series and get the hard copy of study material delivered to your doorstep, so your preparation never hits a bump! Follow our social media handles to stay updated on all things economics. Follow Ecoholics on Twitter-   / ecoholics_in   Follow Ecoholics Facebook Group -   / 41907.  . Follow Ecoholics Facebook Page -   / ecoholics8   Follow Ecoholics on Instagram:   / ecoholics.in   Follow Ecoholics on Telegram: https://t.me/ecoholicsbysanat Become a Member of Largest Community of Economics: https://ecoholics.in/become-a-member/ #cousesofbop #bop #deficitinbop #balanceofpayment #microeconomics #class12 #ecoholics #economics #economic #economists #upsc #rbi #indianeconomicsservice #ias #iitjam #gateeconomics #ugcnet #ugc #jrf #economy #unionpublicservicecomission #ignou #dse #jnu #maentrance #pgentrance