structural disequilibrium denotes change in the economic structure of any state where the balance of payment was previously favourable.
Chat with our AI personalities
There are 3 types of disequilibrium's in balance of payments:- 1) cyclical disequilibrium 2) secular disequilibrium 3) structural disequilibrium structural disequilibrium at:-a) goods level b) at factors level
How do you correct disequilibrium?
dts
Natural Factors: natural calamities such as floods, drought, earthquake etcEconomic Factors: Cyclical fluctuationsInflationCapital movementsMiscellaneous Factors: The changes in tastes, habits, fashions of the people; discovery of new substitutes for exports; the development of alternative sources of supply.Political Factors: example political instability.
Equilibrium is when supply and demand is balanced or equivalent, whereas disequilibrium doesn't attain equilibrium which is either above or below equilibrium.