For College Students

1. International Economics
B.COM SEM-V
UNIT-II

2. DISEQUILIBRIUM
IN THE
BALANCE OF PAYMENTS

3. INTRODUCTION
 The balance of the payments is always in balance but
some times there is a disequilibrium and this
disequilibrium occurs in two ways.
 (a) Temporary or Transitory Disequilibrium
 (b) Fundamental Disequilibrium

4. CAUSES OF DISEQUILIBRIUM IN BALANCE OF
PAYMENTS
 (A) Economic Factors.
(1) Cyclical fluctuations
(2) Inflationary pressure in the economy
(3) Capital movements
(4) Fall in exports and rise imports
 (B) Natural Factors
 (C) Political Factors
 (D) Miscellaneous Factors
(1) High rate of growth of population
(2) Structural changes in the economy
(3) Changes in behavior of country’s people
(4) Discovery of new substitute for exports

5. MEASURES TO CORRECT DISEQUILIBRIUM
IN THE
BALANCE OF PAYMENTS
 (A) Monetary measures
(1) Deflation or Currency contraction
(2) Devaluation
(3) Exchange control
 (B) Non monetary measures
(1) Tariff
(2) Import Quota
(3) Export Promotion
(4) Import Substitution

6. THANK YOU
PREPARED BY
DR.JAGDISH MAHESHWARI
ASSISTANT PROFESSOR,
TOLANI INSTITUTE OF COMMERCE,ADIPUR