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Foreign Trade
Composition of Exports ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Composition of Imports ,[object Object],[object Object],[object Object],[object Object]
Problems of India's Export ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Definition -  Balance of Payment A Balance of Payment account is a statement of double entry system of record of all economic transactions (involving foreign payments) between residents of a country and the rest of the world carried out in specific period of time.
Purpose Of BOP ,[object Object],[object Object],[object Object],[object Object]
TERMINOLOGIES ,[object Object],[object Object],[object Object],[object Object],[object Object]
Balance of Trade Definition:   Difference between value of exports and imports of visible items only BOT BOP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BALANCE OF PAYMENT ACCOUNTS
CURRENT ACCOUNT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Structure of current account Transactions Credit Debit Net Balance ,[object Object],Export Import  - 2. Foreign Travel Earning  Payment - 3. Transportation Earning Payment - 4. Insurance (Premium) Receipt Payment - 5. Investment Income Dividend Receipt Dividend Payment - 6.Government (purchase of goods & services) Receipt Payment - CURRENT A/C Balance - - Surplus (+) Deficit (-)
CAPITAL ACCOUNT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DIFFERENCE BETWEEN CURRENT ACCOUNT AND CAPITAL ACCOUNT CURRENT ACCOUNT CAPITAL ACCOUNT ,[object Object],[object Object],[object Object],[object Object]
STRUCTURE OF BALANCE OF PAYMENTS ACCOUNT Total Receipts Total Payments CREDITS DEBITS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
An Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Balance Of Payment Account Credits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Debits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
EQUILIBRIUM IN BOP ACCOUNTS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
[object Object],[object Object]
Example of Autonomous and Accommodating transactions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Disequilibrium ,[object Object],[object Object],[object Object],[object Object]
CAUSES OF DISEQUILIBRIUM ,[object Object],[object Object],[object Object],[object Object],[object Object]
Corrective Measures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BOP Adjustments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Variations in India’s deficit position ,[object Object],[object Object],[object Object],[object Object],[object Object]
India’s current BOP position ,[object Object],[object Object],[object Object],[object Object]
Capital Account Convertibility ,[object Object],Current Account Transactions Capital Account Transactions Components ,[object Object],[object Object],[object Object],[object Object],Examples ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Convertibility ,[object Object],[object Object],[object Object],[object Object],[object Object],Convertibility Aspect  of Current Account India has “Current Account convertibility” which means that we are free to buy foreign exchange for importing goods, in other words rupee is fully convertible on current account . Convertibility Aspect  of Capital Account Today the rupee is not fully convertible on capital account as there exists restriction on the money that comes in India or that goes out to buy assets abroad .
Dangers of CAC ,[object Object],[object Object],[object Object],[object Object]

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foreign trade

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  • 5. Definition - Balance of Payment A Balance of Payment account is a statement of double entry system of record of all economic transactions (involving foreign payments) between residents of a country and the rest of the world carried out in specific period of time.
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