A country experiencing a significant balance-of-payments surplus would be likely to
A)expand imports,offering marketing opportunities for foreign enterprises.
B)refrain from imposing foreign exchange restrictions.
C)expand exports,offering international marketing opportunities for domestic enterprises.
D)expand imports,offering marketing opportunities for foreign enterprises,and refrain from imposing foreign exchange restrictions.

Question

Quizplus · Accepted Answer

A country with a significant balance-of-payments surplus has more incoming foreign currency than it is spending abroad. This situation often leads to an expansion of imports because the country can afford to buy more from abroad, providing opportunities for foreign enterprises. Additionally, since the country has a surplus, it is less likely to impose foreign exchange restrictions, which are typically used to control outflows of domestic currency and protect the balance of payments.

A Country Experiencing a Significant Balance-Of-Payments Surplus Would Be Likely