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*Discuss the major ways in which the Iraq War (2003-2007) impacted the Balance of Payments (BOP)...

*Discuss the major ways in which the Iraq War (2003-2007) impacted the Balance of Payments (BOP) account of the United States – (Be sure to consider both the Current Account and Capital Account components of the BOP)

- Discussion must be elaborate and well-written

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Answer #1

The Iraq War (2003-2007) had major impacts on the Balance of Payments (BOP) of the United States. Some of them are:

1. The Iraq war added around 1 trillion dollars to the debt of the United States.

2. Companies were disrupted. The economy was deprived of workers and well skilled or educated workforce. This had a negative impact on the service sector of the US.

3. Foreign investors lost confidence due to which foreign direct investments had declined and as a result capital accounts faced deficit.

4. Export and import patterns were affected and net exports of the US had fallen.

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