A government may cause a favourable change in her invisible trade account by
-
developing tourism and other services
- imposing high tariff on exports
- encouraging people to go for medical treatment abroad
- increasing the export of her primary products
The correct answer is: A
Explanation
A government may cause a favourable change in her invisible trade account by developing tourism and other services. Invisible trade account records the movement of services across borders. It includes items such as tourism, transportation, insurance, and royalties.
A government can promote tourism and other services by:
- Investing in infrastructure, such as airports, hotels, and tourist attractions.
- Promoting the country as a tourist destination.
- Providing incentives to businesses that provide services to foreigners.
These measures can help to increase the number of tourists and other service providers in the country, which can lead to a favourable change in the invisible trade account.