Define the following terms: Revaluation, Devaluation, Balance of payment surplus, Foreign reserve, Economic globalization.

QUESTION 16
Define the following terms.

a. Revaluation
Revaluation is an official upward adjustment of a country's currency value relative to a foreign currency in a fixed exchange rate system.

b. Devaluation
Devaluation is an official downward adjustment of a country's currency value relative to a foreign currency in a fixed exchange rate system.

c. Balance of payment surplus
A balance of payment surplus occurs when a country's total receipts from international transactions (exports, foreign investment, etc.) exceed its total payments to other countries (imports, foreign aid, etc.) over a specific period.

d. Foreign reserve
Foreign reserves are assets held by a country's central bank, typically in foreign currencies, gold, or special drawing rights, used to back its liabilities and manage its exchange rate.

e. Economic globalization
Economic globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of goods and services, flow of international capital, and wide and rapid spread of technologies.