Unit 3: Balance of Payments: The UK's trade deficit is at its highest level since the late 1980s

The UK trade deficit is at its highest level since the late 1980s, official figures have shown according to this BBC clip.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7150000/newsid_7155000?redirect=7155040.stm&news=1&bbwm=1&nbram=1&nbwm=1&bbram=1&asb=1 >

a)What does a balance of payments deficit mean?
b)What does the economy need to do to reduce the deficit?
c)How would a decrease in the value of the pound help this process?