Solution:Main components of the current Account:
1. Trade Balance (Merchandise or Visible Trade)
Exports of goods (eg. Machinery, food, oil)
Imports of goods (eg. electronics, raw materials)
Trade Balance = Exports - imports of goods
2. Invisible balance (services)
Exports of services (eg. Software, banking, tourism)
Imports of services (eg. Shipping, consulting)
3. Primary income
Investment income (dividends, interest, profit from FDI or portfolio investments).
Compensation of employees (cross- border wages salaries).
4. Secondary income (unilateral transfer)
Private transfer (remittances sent by individuals, working abroad).
official transfer (foreign acid, donations, grants).
Gifts, pensions, and other one - way transfers.