17 Jul Explain in detail the impact of the trade deficit on the balance of payments and exchange rate of the economy.
7
India’s trade deficit has risen by almost 88% in financial year 2022. While total exports increased, imports too soared to a great extent. Analyze the impact of this trade deficit on the balance of payments as well as the exchange rate of the economy and thereafter on a Real Estate or Construction Business.
Guidelines:
- Explain in detail the impact of the trade deficit on the balance of payments and exchange rate of the economy.
- Analyze how any Real Estate or Construction Company would be impacted because of the various macroeconomic factors linked with the trade deficit. Kindly make sure that the analysis is comprehensive with well established linkages.
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