Describe THREE ways by which balance of payment deficit can be corrected. – NABTEB QUESTION

How to correct balance of payments deficit

i. Borrowing from international financial/organizations or from friendly countries.

ii. Embargo/ban on importation

iii. Quotas

iv. Tight foreign exchange control

v. Selling foreign investments

vi. Importing on credits

vii. Devaluation of currency

viii. Import licensing