PRC-3 · Chapter 20 · Question 23 of 30
How does a massive wave of outward labor migration from a developing economy (like workers moving to the Gulf) generally affect that developing economy's Balance of Payments?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It improves it significantly by increasing the inflows of current transfers (remittances)
Explanation
Migrant workers send money back home (remittances), which are recorded as positive inflows in the current account, strongly improving the balance of payments.
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