Which is least influence on current account? Inflation, national income, exchange rate, tariffs, foreign tax?

Question

Which is least influence on current account? Inflation, national income, exchange rate, tariffs, foreign tax?

Answer 1

in really depends on the values of these factors.

Answer 2

Foreign tax has the least effect.

Inflation affects the trade account and hence the current account. The same is true of change in National income, Exchange rates affect relative competitiveness of exports and imports and hence have a large effect on current account. Tariifs make exports and imports more or less costiler and gence affect exports and inports and henece the trade account and therefore the current account. Foreign tax can affect marginally as foreign tax is applicable to a small base of trade and payments and unlikely to ve very high.