Economics · May / June 2016 · Paper 11 · Question 30

70% of the 10 million kilograms of tea produced in India is exported. The UK, Japan, and Germany buy the most. Wholesale prices rose 10% in 2013 as supply was restricted because of a strike. How would these circumstances be shown in international trade accounts?

1. Aa credit on the goods and services account for Germany
2. Ba debit on the goods and services account for Japan
3. Ca 10% fall in the balance of the goods and services account for India
4. Da 10% rise in the balance of goods and services account for the UK

As printed in the paper