What is included in the current account?

The current account of a country's balance of payments primarily includes trade in goods and services, along with net income from investments and transfers. This encompasses the value of exports and imports of goods (such as manufactured products and raw materials) and services (like tourism and financial services). Additionally, net investment income, which includes income earned on investments abroad minus payments made to foreign investors, is also part of the current account.

In this context, the focus on trade in goods and services, complemented by the net income component, provides a comprehensive view of a country’s economic transactions with the rest of the world. This is critical for understanding a nation’s balance of payments and its overall economic health.

The other options relate to different aspects of economic transactions that are not part of the current account. For instance, capital flows from investments in foreign markets pertains to the capital account, which captures financial transactions rather than trade in goods and services. Government spending on foreign aid involves financial outflows, but it doesn't fit within the current account's framework, as it is not related to trade in goods or services or investment income. Lastly, export tariffs are levies imposed on goods sold abroad, which can influence trade figures but do not directly constitute a component of the current account itself.