Balancing the U.K.'s Current-Account Deficit

The video discusses the current account deficit in Britain, highlighting the imbalance in income flows and trade balance. It explains the role of Sterling in addressing the deficit and the potential need for the government to redirect resources from financial services to manufacturing. The discussion includes the impact of market access to the European Union and the strategies the government might employ to manage the deficit.

In what ways could the financial services sector be affected if access to the European market is restricted?

What might be the implications of redirecting resources from financial services to manufacturing?