Net Trade

Question 1

Exchange rate

Answer 1

Exchange rates are the price of one country’s’ currency in relation to another.

Question 2

Net primary income

Answer 2

Part of the current account of the balance of payments, it measures the net flow of profits, interest and dividends from investments in other countries and net remittance flows from migrant workers.

Question 3

Net secondary income

Answer 3

Part of the current account of the balance of payments, it includes overseas aid / debt relief, military grants and (for the UK) net payments to the European Union.

Question 4

Net trade

Answer 4

The balance between the monetary value of exports and imports.

Question 5

Protectionism

Answer 5

Restricting trade through tariffs and other forms of import controls such as quotas.