Please ensure that the word count of
your report does not exceed 1,750 words excluding tables, diagrams, statistical
A (Total 35 marks)
on to the SIM Library e-Resources, and access the latest reports (and earlier
reports if necessary) on United States, under the Economist Intelligence Unit
(EIU) Country Report. Answer the following questions related to international
balance of payments.
(a) Describe the government budget status
and the international balance of paymentstatus
of the United States. If a country is running a government budget deficit,explain if such a deficit will contribute to a
current account deficit.
The U.S. current account deficit is
largely attributed to the widening trade deficit with China. Discuss the major factors that contribute to the trade
imbalance between these two
Identify and analyse the measures
that have been taken by policymakers in bothcountries
to correct their trade imbalance.
on to the SIM Library e-Resources, Economic Intelligence Unit (EIU) Country
Reports and access the latest issue of report on Malaysia.
the current account balance of Malaysia and its holdings of international reserves over the period from 2007 to 2012,
and explain the reasons leading to this trend.
Discuss the advantages and
disadvantages to Malaysia of having large current account surpluses.
Describe the current exchange-rate
regime that is adopted by the Malaysian central bank. Discuss the advantages and disadvantages of adopting