Under which circumstances can BALANCE OF PAYMENTS be a problem?

Question

Please help. I can find what balance of payments are but can't work out when they can be a problem. As they always balance why should there be a problem?Thanx

Answer 1

Baqlance of apyments does not mean that they balance.

it means the difference in value between  a country's imports and exports.

If the exports are higher than the import you have a positive balance of payments, hence there is more money coming into the country so the country is getting richer.

If the imports are higher than the exports the country is spending more money than it is receiving.