UPSC CSE Prelims
Question 4
In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to
View correct answer and explanation
Correct answer: A
Correct Option: A
Explanation: Expenditure in India by foreign tourists during the 2010 Commonwealth Games represents an export of travel/tourism services in the balance of payments.
Option-wise Analysis:
A: Correct - non-residents consume services provided domestically, earning foreign-exchange receipts.
B: Incorrect - An import is a resident purchase from a non-resident, the reverse flow.
C: Incorrect - Production is an activity, not the correct external-sector classification of these receipts.
D: Incorrect - Consumption occurs, but “export” describes the transaction in national external accounts.