The Balance of  Payments
Learning Objectives <ul><li>To understand the fundamental principles of how  countries measure international business acti...
Introduction <ul><li>The measurement of all international economic transactions between the residents of a country and for...
Current Account  <ul><li>I.A. goods, services, and income: 1.Merchandise </li></ul><ul><li>2. Shipment and other transport...
Capital Account <ul><li>II.C. Capital excluding reserves </li></ul><ul><li>1. Direct investment </li></ul><ul><li>2. Portf...
Reserves <ul><li>III. D. Reserves  </li></ul><ul><li>1. Monetary gold </li></ul><ul><li>2. Special Drawing Rights </li></u...
Balance of payment equilibrium <ul><li>Occurs when surplus or deficit is eliminated from the BOP </li></ul><ul><li>Causes ...
Upcoming SlideShare
Loading in...5
×

The Balance Of

844

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
844
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
18
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "The Balance Of"

  1. 1. The Balance of Payments
  2. 2. Learning Objectives <ul><li>To understand the fundamental principles of how countries measure international business activity, the balance of payments </li></ul><ul><li>To understand the critical differences between trade in merchandise and services </li></ul><ul><li>To understand how countries with different government policies toward international trade and investments, or different levels of economic development, differ in their balance of payments </li></ul>
  3. 3. Introduction <ul><li>The measurement of all international economic transactions between the residents of a country and foreign residents is called the balance of payments (BOP) </li></ul><ul><li>The two major sub accounts of the balance of payments are: </li></ul><ul><ul><li>Current account </li></ul></ul><ul><ul><li>Capital account </li></ul></ul><ul><ul><li>Reserves </li></ul></ul>
  4. 4. Current Account <ul><li>I.A. goods, services, and income: 1.Merchandise </li></ul><ul><li>2. Shipment and other transportation </li></ul><ul><li>3. Travel </li></ul><ul><li>4. Investment income </li></ul><ul><li>5. Other official </li></ul><ul><li>6. Other private </li></ul><ul><li>B. Unrequited transfers: </li></ul><ul><li>1. Private </li></ul><ul><li>2. Officials </li></ul>
  5. 5. Capital Account <ul><li>II.C. Capital excluding reserves </li></ul><ul><li>1. Direct investment </li></ul><ul><li>2. Portfolio investment </li></ul><ul><li>3.Other long-term, official </li></ul><ul><li>4. Other long- term, Private </li></ul><ul><li>5. Other short- term, official </li></ul><ul><li>6. Other short – term, private </li></ul>
  6. 6. Reserves <ul><li>III. D. Reserves </li></ul><ul><li>1. Monetary gold </li></ul><ul><li>2. Special Drawing Rights </li></ul><ul><li>3. IMF reserve position </li></ul><ul><li>4. Foreign Exchange assets </li></ul>
  7. 7. Balance of payment equilibrium <ul><li>Occurs when surplus or deficit is eliminated from the BOP </li></ul><ul><li>Causes for disequilibrium </li></ul><ul><li>1. National output and National spending </li></ul><ul><li>2. Money supply </li></ul><ul><li>3. Exchange Rate </li></ul><ul><li>4. Interest rate </li></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×