1. The following plot shows the current account balance (as a percent of GDP) for the five BRICS economies (Brazil, Russia, India, China and South Africa) from the first quarter of 2003 to the second quarter of 2019:

• Discuss the trend of the current account balance (as a percent of GDP) over the sample period, and its corresponding implication for the degree of competitiveness in international trade, for each economy.

                                                                                                                          [10 marks]

1. If you aim to run a domestic business in one of these economies, discuss which economy (out of the five ones) you would choose to invest in, and why?                                                                                                                                             

                                                                                                                                   [5 marks]

1. Suppose that you are an analyst for the central bank of Brazil. Discuss how its Balance of Payment accounts are affected by the following: (i) A budget deficit financed by foreign borrowing, and (ii) An export quota for its agricultural commodities.

                                                                                                                     [5 marks]

1. What is the type of exchange rate system adopted by China? Discuss its advantages and disadvantages.

                                                                                                                     [5 marks]