SlideShare a Scribd company logo
SEMINAR ON
INTERNATIONAL FINANCE
BALANCE OF PAYMENTS
GROUP : 1
Group Members :
1. Ajeesh M.K
2. Nisham M
3. Sajeesh
4. Swathy Vasudevan
BALANCE OF PAYMENT
• BOP is a statement listing receipts and payments in international
transactions of a country.
• Based on Double entry book-keeping concept.
• Credit Balance Receipt of Foreign Exchange from abroad.
• Debit Balance Payment in Foreign Exchange to foreign
residents.
• Equal debit and credit balances if entries
are done properly.
B O P ….
 The Balance of Payments of a country is a systematic record of all
economic transactions between the residents of a country and the rest of
the world.
 Presents a classified record of all receipts on account of goods exported,
services rendered and capital received by residents and payments made
by them on account of goods imported and services received from the
capital transferred to non-residents or foreigners.
 Economic Transactions – import and export (capital inflow &
outflow as FII & FDI)
• Residents - Individuals & fin. Institutions permanently residing in the country’s
border.
IMPORTANCE OF B.O.P
 Records all the transactions that create demand for and supply
of a currency.
 Indicates demand-supply equation of the currency.
 Confirm trend in economy’s international trade and exchange
rate of the currency.
 Indicate change or reversal in the trend.
 Indicate policy shift of the monetary authority (RBI) of the
country.
TYPES OF ECONOMIC TRANSACTIONS
 Cash Transactions
 Payments & Receipts
 Financial Securities
 Barter system
 Gifts & Donations (Payment/ Receipt)
B.O.PACCOUNTING
 BOP follows the accounting system of double entry.
 Balance of payments accounting system (BOP) is an accounting
system design to track buy and sell transactions between countries
by an individuals, businesses and government agencies.
 A double entry system in which each transaction creates a credit
entry and a debit entry of equal value.
 Buying goods and services creates debit entries and selling things
produces credits entries.
 The two BOP entries are used to denote the giving and receiving
sides of external transactions.
ASPECTS OF B.O.PACCOUNTING
 Each economic transactions have a debit and credit aspect.
CREDIT TRANSACTIONS DEBIT TRANSACTIONS
Exports of goods & services Import of goods & services
Income receivable from abroad Income payable abroad
Transfers from abroad Transfers to abroad
Increase in external liabilities Decrease in external liabilities
Decrease in external assets Increase in external assets
B.O.PACCOUNTING
 The net sum of credit and debit entries is zero.
 Data are collected from many sources - discrepancies
between the entries occur for various reasons.
 Omissions and inaccurate measurements may occur.
 Equality between the sum of credit and debit entries is
brought about by the inclusion of a balancing item which
reflects net errors and omissions.
B.O.P COMPONENTS
 Current Account
 Capital Account
 Official reserve account
CURRENT ACCOUNT
 Represents the real income.
 Includes :
1. Import of Goods
2. Balance of Merchandise Trade
3. Invisibles
Balance of Trade : Export – Import
Export > Import → Surplus BOT
Export < Import → Deficit BOT
Invisibles : Receipts & payments on :
1. Trade & services like tourism, transport etc
2. Interest, Dividend
3. Unilateral Transfers : Pension, Remittances, gifts
CURRENT ACCOUNT…
 Movement of Gold : Monetary or Non- monetary
{ Monetary : sale or purchase that influence international
monetary reserves. }
CAPITALACCOUNT
 Consists changes in financial position of country.
 Comprise short term and long term inflow and outflow of funds.
 Credit side records official & private borrowings from abroad net
of repayments, direct and portfolio investment and short term
investments into the county, bank balances of non residents held in
the country etc.
 Debit side records dis-investment of capital invested into the
country, the country’s investment abroad, loans given to a foreign
government and bank balances held abroad.
OFFICIAL RESERVE ACCOUNT
 The surplus of capital and current account are transffered to ORA.
 ORA can be used where there occurs future deficit.
 Only reserve assets are included.
 Reserve assets are those assets which the monetary authority of a
country used to settle the trade , the surplus or deficit that arise on
the capital and current account.
 Includes:
- The cash balance in Central Bank
- Gold
- Reserve in IMF
B.O.P EQUILIBRIUM
 Balance of payments equilibrium occurs when induced balance
of payments transactions - those engineered by the government
to influence the nominal exchange rate - are zero.
 Implies that autonomous receipts from exports and the sale of
securities abroad equal autonomous payments for imports and
the purchase of securities from foreign residents.
 Since changes in the stock of official reserves of foreign
exchange are the method used by the authorities to fix or
manipulate the exchange rate, BOP equilibrium requires that the
stock of foreign exchange reserves be constant.
B.O.P EQUILIBRIUM…
 If debit on current account is greater than the credit, funds flow into
the country that are recorded on the credit side of the capital
account and the excess of debit is wiped out.
 Ex-post Concept - Describes what has actually happened
over a specific past period
CURRENT ACCOUNT + CAPITAL ACCOUNT = 0
B.O.P DISEQUILIBRIUM
 Occurs when :
Demand ≠ Supply
Debit > Credit → Deficit
B.O.P DISEQULIBRIUM - CAUSES
1. Development Schemes :
- Huge investment in development schemes in developing
countries Export ↓ Import ↑ → Structural changes in BOP
2. Price – Cost Structure :
- Change in PCS of export industries affect export volume
- Increase in price due to higher wages, high cost of raw material
3. Change in Foreign Exchange rate :
- ↑ External value of money Import ↑ Export ↓
- ↓ External value of money Import ↓ Export ↑
B.O.P DISEQULIBRIUM – CAUSES…
4. Fall in Export Demand :
- increase in domestic production in rich countries.
- loss of colonial markets.
- more persistent in underdeveloped countries.
5. Demonstration Effect :
- People in under developed countries tend to follow consumption pattern
of developed countries imports increase and creates dis-
equilibrium
6. International Borrowing & Lending :
- Borrowing country have unfavorable bop – lending country have
unfavorable bop
B.O.P DISEQULIBRIUM – CAUSES…
7. Cyclical Fluctuations :
During depression income of people in foreign countries
fall → exports decrease → bop disequilibrium
8. Natural Factors :
- Drought, floods etc adversely affect the country production.
- Exports falls, imports increase leading to bop deficit.
9. Population Explosion :
- Rapid growth of population → imports increase → decrease export
capacity
QUESTIONS ???

More Related Content

What's hot

Balance of Payment
Balance of Payment Balance of Payment
Balance of Payment
Jay Raval
 
Excahange rate determination
Excahange rate determinationExcahange rate determination
Excahange rate determination
Daksh Goyal
 
Balance of Payment
Balance of PaymentBalance of Payment
Balance of Payment
Medlin Rozario
 
Balance of payment theory
Balance of payment theoryBalance of payment theory
Balance of payment theory
N A M COLLEGE KALLIKKANDY
 
BALANCE OF PAYMENT
BALANCE OF PAYMENTBALANCE OF PAYMENT
BALANCE OF PAYMENT
Sourabh Modgil
 
Balance of Trade and Balance of Payments
Balance of Trade and Balance of PaymentsBalance of Trade and Balance of Payments
Balance of Trade and Balance of Payments
Mahendra Kumar Ghadoliya
 
Balance of payment concept, components and trends
Balance of payment concept, components and trends Balance of payment concept, components and trends
Balance of payment concept, components and trends
shivakumar patil
 
Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
Akshay Singh
 
Determination of exchange rate chapter 6
Determination of exchange rate chapter 6Determination of exchange rate chapter 6
Determination of exchange rate chapter 6
Nayan Vaghela
 
BALANCE OF PAYMENTS
BALANCE OF PAYMENTSBALANCE OF PAYMENTS
BALANCE OF PAYMENTS
aneesh p
 
The Heckscher-Ohlin theory of international trade/ Modern International Trade...
The Heckscher-Ohlin theory of international trade/ Modern International Trade...The Heckscher-Ohlin theory of international trade/ Modern International Trade...
The Heckscher-Ohlin theory of international trade/ Modern International Trade...
clincy cleetus
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
N A M COLLEGE KALLIKKANDY
 
International Trade
International TradeInternational Trade
International Trade
Dr. Mani Madhavan
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
Suresh Thengumpallil
 
Balance of Payment Disequilibrium and Causes
Balance of Payment Disequilibrium and CausesBalance of Payment Disequilibrium and Causes
Balance of Payment Disequilibrium and Causes
Neema Gladys
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
Ashish Kumar
 
Unit 5 Balance of Payments
Unit   5 Balance of PaymentsUnit   5 Balance of Payments
Unit 5 Balance of Payments
Ritvik Tolumbia
 
Foreign exchange market-final ppt(my)
Foreign exchange market-final ppt(my)Foreign exchange market-final ppt(my)
Foreign exchange market-final ppt(my)
J Prateek Kundu
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
shelly hanspal
 
Balance of Trade - Importance and Types
Balance of Trade - Importance and TypesBalance of Trade - Importance and Types
Balance of Trade - Importance and Types
Sundar B N
 

What's hot (20)

Balance of Payment
Balance of Payment Balance of Payment
Balance of Payment
 
Excahange rate determination
Excahange rate determinationExcahange rate determination
Excahange rate determination
 
Balance of Payment
Balance of PaymentBalance of Payment
Balance of Payment
 
Balance of payment theory
Balance of payment theoryBalance of payment theory
Balance of payment theory
 
BALANCE OF PAYMENT
BALANCE OF PAYMENTBALANCE OF PAYMENT
BALANCE OF PAYMENT
 
Balance of Trade and Balance of Payments
Balance of Trade and Balance of PaymentsBalance of Trade and Balance of Payments
Balance of Trade and Balance of Payments
 
Balance of payment concept, components and trends
Balance of payment concept, components and trends Balance of payment concept, components and trends
Balance of payment concept, components and trends
 
Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
 
Determination of exchange rate chapter 6
Determination of exchange rate chapter 6Determination of exchange rate chapter 6
Determination of exchange rate chapter 6
 
BALANCE OF PAYMENTS
BALANCE OF PAYMENTSBALANCE OF PAYMENTS
BALANCE OF PAYMENTS
 
The Heckscher-Ohlin theory of international trade/ Modern International Trade...
The Heckscher-Ohlin theory of international trade/ Modern International Trade...The Heckscher-Ohlin theory of international trade/ Modern International Trade...
The Heckscher-Ohlin theory of international trade/ Modern International Trade...
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
International Trade
International TradeInternational Trade
International Trade
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of Payment Disequilibrium and Causes
Balance of Payment Disequilibrium and CausesBalance of Payment Disequilibrium and Causes
Balance of Payment Disequilibrium and Causes
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
 
Unit 5 Balance of Payments
Unit   5 Balance of PaymentsUnit   5 Balance of Payments
Unit 5 Balance of Payments
 
Foreign exchange market-final ppt(my)
Foreign exchange market-final ppt(my)Foreign exchange market-final ppt(my)
Foreign exchange market-final ppt(my)
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of Trade - Importance and Types
Balance of Trade - Importance and TypesBalance of Trade - Importance and Types
Balance of Trade - Importance and Types
 

Viewers also liked

Balance Of Payment ( Bo P)
Balance Of  Payment ( Bo P)Balance Of  Payment ( Bo P)
Balance Of Payment ( Bo P)
guest8fdbdd
 
Balance of Payment(BOP)
Balance of Payment(BOP)Balance of Payment(BOP)
Balance of Payment(BOP)
Umar Jalil
 
balance of payment
 balance of payment balance of payment
balance of payment
funwithsiddh
 
Balance of payment, Current Account, Capital Account, Unilateral transfers
Balance of payment, Current Account, Capital Account, Unilateral transfersBalance of payment, Current Account, Capital Account, Unilateral transfers
Balance of payment, Current Account, Capital Account, Unilateral transfers
Sachin Paurush
 
Foreign exchange exposure PPT
Foreign exchange exposure PPTForeign exchange exposure PPT
Foreign exchange exposure PPT
Vijay Mehta
 
Chapter 10 balance of payment
Chapter 10 balance of paymentChapter 10 balance of payment
Chapter 10 balance of payment
scheang
 
Bop
BopBop
The Balance Of Payments
The Balance Of PaymentsThe Balance Of Payments
The Balance Of Payments
itsvineeth209
 
Rupee vs dollar
Rupee vs dollarRupee vs dollar
Rupee vs dollar
Neelutpal Saha
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
Karan Desai
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
viswa keerthi
 
Balance of Payment (BOP)
Balance of Payment (BOP)Balance of Payment (BOP)
Balance of Payment (BOP)
Kanchan Kandel
 
Import Substitution and Export Promotion
Import Substitution and Export PromotionImport Substitution and Export Promotion
Import Substitution and Export Promotion
James Thuch Madhier
 
Balance of payments and Exchange rate
Balance of payments and Exchange rateBalance of payments and Exchange rate
Balance of payments and Exchange rate
shweta_singh_xoxo
 
Export promotion vs import substitution
Export promotion vs import substitutionExport promotion vs import substitution
Export promotion vs import substitution
sushant raghav
 
Presentation balance of payment
Presentation balance of paymentPresentation balance of payment
Presentation balance of payment
Bazari Azhar Azizi
 
Tariff and Non Tariff Barriers
Tariff and Non Tariff Barriers Tariff and Non Tariff Barriers
Tariff and Non Tariff Barriers
Gaurav Kamboj
 
Balance of payment chapter 5
Balance of payment chapter 5Balance of payment chapter 5
Balance of payment chapter 5
Nayan Vaghela
 
India- Balance of Payment analysis
India- Balance of Payment analysisIndia- Balance of Payment analysis
India- Balance of Payment analysis
Prabhash Jha
 
Tariff and non tariff barrier
Tariff and non tariff barrierTariff and non tariff barrier
Tariff and non tariff barrier
StudsPlanet.com
 

Viewers also liked (20)

Balance Of Payment ( Bo P)
Balance Of  Payment ( Bo P)Balance Of  Payment ( Bo P)
Balance Of Payment ( Bo P)
 
Balance of Payment(BOP)
Balance of Payment(BOP)Balance of Payment(BOP)
Balance of Payment(BOP)
 
balance of payment
 balance of payment balance of payment
balance of payment
 
Balance of payment, Current Account, Capital Account, Unilateral transfers
Balance of payment, Current Account, Capital Account, Unilateral transfersBalance of payment, Current Account, Capital Account, Unilateral transfers
Balance of payment, Current Account, Capital Account, Unilateral transfers
 
Foreign exchange exposure PPT
Foreign exchange exposure PPTForeign exchange exposure PPT
Foreign exchange exposure PPT
 
Chapter 10 balance of payment
Chapter 10 balance of paymentChapter 10 balance of payment
Chapter 10 balance of payment
 
Bop
BopBop
Bop
 
The Balance Of Payments
The Balance Of PaymentsThe Balance Of Payments
The Balance Of Payments
 
Rupee vs dollar
Rupee vs dollarRupee vs dollar
Rupee vs dollar
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of Payment (BOP)
Balance of Payment (BOP)Balance of Payment (BOP)
Balance of Payment (BOP)
 
Import Substitution and Export Promotion
Import Substitution and Export PromotionImport Substitution and Export Promotion
Import Substitution and Export Promotion
 
Balance of payments and Exchange rate
Balance of payments and Exchange rateBalance of payments and Exchange rate
Balance of payments and Exchange rate
 
Export promotion vs import substitution
Export promotion vs import substitutionExport promotion vs import substitution
Export promotion vs import substitution
 
Presentation balance of payment
Presentation balance of paymentPresentation balance of payment
Presentation balance of payment
 
Tariff and Non Tariff Barriers
Tariff and Non Tariff Barriers Tariff and Non Tariff Barriers
Tariff and Non Tariff Barriers
 
Balance of payment chapter 5
Balance of payment chapter 5Balance of payment chapter 5
Balance of payment chapter 5
 
India- Balance of Payment analysis
India- Balance of Payment analysisIndia- Balance of Payment analysis
India- Balance of Payment analysis
 
Tariff and non tariff barrier
Tariff and non tariff barrierTariff and non tariff barrier
Tariff and non tariff barrier
 

Similar to Balance Of Payment

Balance of paymment - BOP
Balance of paymment - BOPBalance of paymment - BOP
Balance of paymment - BOP
David Jaison
 
Accounting principles in bop
Accounting principles in bopAccounting principles in bop
Accounting principles in bop
N A M COLLEGE KALLIKKANDY
 
Ppt of bop
Ppt of bopPpt of bop
Ppt of bop
Balbharti
 
BALANCE OF PAYMENT
BALANCE OF PAYMENTBALANCE OF PAYMENT
BALANCE OF PAYMENT
SimranSeth7
 
Balance-of-Payment.ppt
Balance-of-Payment.pptBalance-of-Payment.ppt
Balance-of-Payment.ppt
NameirakpamTaibangng
 
BOP.pdf
BOP.pdfBOP.pdf
BOP.pdf
sampadachorat
 
BOP (1).pdf
BOP (1).pdfBOP (1).pdf
BOP (1).pdf
sampadachorat
 
BOP.pdf
BOP.pdfBOP.pdf
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
VINAY KENKERE
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
Sunita Sukhija
 
Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
BinduHA
 
Bop
BopBop
Balance of Payments Basics - 2015 (India)
Balance of Payments Basics - 2015 (India)Balance of Payments Basics - 2015 (India)
Balance of Payments Basics - 2015 (India)
Suryansh Bansal
 
Balance of Payment
Balance of PaymentBalance of Payment
Balance of Payment
AnjaliSingh748
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
Yagnesh sondarva
 
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvcbop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
wexop40522
 
Balance Of Payment
Balance Of PaymentBalance Of Payment
Balance Of Payment
sarthakjain218
 
Balnace of payment affect macroeconomics
Balnace of payment affect macroeconomicsBalnace of payment affect macroeconomics
Balnace of payment affect macroeconomics
suhail kareem
 
Balance-of-Payment.pdf
Balance-of-Payment.pdfBalance-of-Payment.pdf
Balance-of-Payment.pdf
SwatiRathor5
 
Balance-of-Payment.pdf
Balance-of-Payment.pdfBalance-of-Payment.pdf
Balance-of-Payment.pdf
dichabengp
 

Similar to Balance Of Payment (20)

Balance of paymment - BOP
Balance of paymment - BOPBalance of paymment - BOP
Balance of paymment - BOP
 
Accounting principles in bop
Accounting principles in bopAccounting principles in bop
Accounting principles in bop
 
Ppt of bop
Ppt of bopPpt of bop
Ppt of bop
 
BALANCE OF PAYMENT
BALANCE OF PAYMENTBALANCE OF PAYMENT
BALANCE OF PAYMENT
 
Balance-of-Payment.ppt
Balance-of-Payment.pptBalance-of-Payment.ppt
Balance-of-Payment.ppt
 
BOP.pdf
BOP.pdfBOP.pdf
BOP.pdf
 
BOP (1).pdf
BOP (1).pdfBOP (1).pdf
BOP (1).pdf
 
BOP.pdf
BOP.pdfBOP.pdf
BOP.pdf
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
 
Bop
BopBop
Bop
 
Balance of Payments Basics - 2015 (India)
Balance of Payments Basics - 2015 (India)Balance of Payments Basics - 2015 (India)
Balance of Payments Basics - 2015 (India)
 
Balance of Payment
Balance of PaymentBalance of Payment
Balance of Payment
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvcbop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
 
Balance Of Payment
Balance Of PaymentBalance Of Payment
Balance Of Payment
 
Balnace of payment affect macroeconomics
Balnace of payment affect macroeconomicsBalnace of payment affect macroeconomics
Balnace of payment affect macroeconomics
 
Balance-of-Payment.pdf
Balance-of-Payment.pdfBalance-of-Payment.pdf
Balance-of-Payment.pdf
 
Balance-of-Payment.pdf
Balance-of-Payment.pdfBalance-of-Payment.pdf
Balance-of-Payment.pdf
 

More from Ajeesh Mk

Indian Financial System
Indian Financial SystemIndian Financial System
Indian Financial System
Ajeesh Mk
 
International Finan
International FinanInternational Finan
International Finan
Ajeesh Mk
 
Transperancy international india (tii)
Transperancy international india (tii)Transperancy international india (tii)
Transperancy international india (tii)
Ajeesh Mk
 
CHANDHUBHAI VIRANI- Owner of Balaji Wafer
CHANDHUBHAI VIRANI- Owner of Balaji WaferCHANDHUBHAI VIRANI- Owner of Balaji Wafer
CHANDHUBHAI VIRANI- Owner of Balaji Wafer
Ajeesh Mk
 
WHISTLE-BLOWING
WHISTLE-BLOWINGWHISTLE-BLOWING
WHISTLE-BLOWING
Ajeesh Mk
 
Globalisation
GlobalisationGlobalisation
Globalisation
Ajeesh Mk
 
Major 8 MNC's from different sector (Brief)
Major 8 MNC's from different sector (Brief)Major 8 MNC's from different sector (Brief)
Major 8 MNC's from different sector (Brief)
Ajeesh Mk
 
PROJECT REPORT ON EMPLOYEE SATISFACTION (sample)
PROJECT REPORT ON EMPLOYEE SATISFACTION (sample)PROJECT REPORT ON EMPLOYEE SATISFACTION (sample)
PROJECT REPORT ON EMPLOYEE SATISFACTION (sample)
Ajeesh Mk
 
PROJECT SCHEDULE
PROJECT SCHEDULEPROJECT SCHEDULE
PROJECT SCHEDULE
Ajeesh Mk
 
CROSS BORDER M&A AND COPERATE RESTRUCTURING
CROSS BORDER M&A AND COPERATE RESTRUCTURINGCROSS BORDER M&A AND COPERATE RESTRUCTURING
CROSS BORDER M&A AND COPERATE RESTRUCTURING
Ajeesh Mk
 
MANAGING RESISTANCE TO CHANGE
MANAGING RESISTANCE TO CHANGEMANAGING RESISTANCE TO CHANGE
MANAGING RESISTANCE TO CHANGE
Ajeesh Mk
 
COPYWRITING STYLES IN ADVERTISING (5)
COPYWRITING STYLES IN ADVERTISING (5)COPYWRITING STYLES IN ADVERTISING (5)
COPYWRITING STYLES IN ADVERTISING (5)
Ajeesh Mk
 
PRIMARY MARKET
PRIMARY MARKETPRIMARY MARKET
PRIMARY MARKET
Ajeesh Mk
 
WAREHOUSING AND STORAGE IN SUPPLY CHAIN MANAGEMENT
WAREHOUSING AND STORAGE IN SUPPLY CHAIN MANAGEMENTWAREHOUSING AND STORAGE IN SUPPLY CHAIN MANAGEMENT
WAREHOUSING AND STORAGE IN SUPPLY CHAIN MANAGEMENT
Ajeesh Mk
 
STRUCTURAL IMPLEMENTATION
STRUCTURAL IMPLEMENTATIONSTRUCTURAL IMPLEMENTATION
STRUCTURAL IMPLEMENTATION
Ajeesh Mk
 

More from Ajeesh Mk (15)

Indian Financial System
Indian Financial SystemIndian Financial System
Indian Financial System
 
International Finan
International FinanInternational Finan
International Finan
 
Transperancy international india (tii)
Transperancy international india (tii)Transperancy international india (tii)
Transperancy international india (tii)
 
CHANDHUBHAI VIRANI- Owner of Balaji Wafer
CHANDHUBHAI VIRANI- Owner of Balaji WaferCHANDHUBHAI VIRANI- Owner of Balaji Wafer
CHANDHUBHAI VIRANI- Owner of Balaji Wafer
 
WHISTLE-BLOWING
WHISTLE-BLOWINGWHISTLE-BLOWING
WHISTLE-BLOWING
 
Globalisation
GlobalisationGlobalisation
Globalisation
 
Major 8 MNC's from different sector (Brief)
Major 8 MNC's from different sector (Brief)Major 8 MNC's from different sector (Brief)
Major 8 MNC's from different sector (Brief)
 
PROJECT REPORT ON EMPLOYEE SATISFACTION (sample)
PROJECT REPORT ON EMPLOYEE SATISFACTION (sample)PROJECT REPORT ON EMPLOYEE SATISFACTION (sample)
PROJECT REPORT ON EMPLOYEE SATISFACTION (sample)
 
PROJECT SCHEDULE
PROJECT SCHEDULEPROJECT SCHEDULE
PROJECT SCHEDULE
 
CROSS BORDER M&A AND COPERATE RESTRUCTURING
CROSS BORDER M&A AND COPERATE RESTRUCTURINGCROSS BORDER M&A AND COPERATE RESTRUCTURING
CROSS BORDER M&A AND COPERATE RESTRUCTURING
 
MANAGING RESISTANCE TO CHANGE
MANAGING RESISTANCE TO CHANGEMANAGING RESISTANCE TO CHANGE
MANAGING RESISTANCE TO CHANGE
 
COPYWRITING STYLES IN ADVERTISING (5)
COPYWRITING STYLES IN ADVERTISING (5)COPYWRITING STYLES IN ADVERTISING (5)
COPYWRITING STYLES IN ADVERTISING (5)
 
PRIMARY MARKET
PRIMARY MARKETPRIMARY MARKET
PRIMARY MARKET
 
WAREHOUSING AND STORAGE IN SUPPLY CHAIN MANAGEMENT
WAREHOUSING AND STORAGE IN SUPPLY CHAIN MANAGEMENTWAREHOUSING AND STORAGE IN SUPPLY CHAIN MANAGEMENT
WAREHOUSING AND STORAGE IN SUPPLY CHAIN MANAGEMENT
 
STRUCTURAL IMPLEMENTATION
STRUCTURAL IMPLEMENTATIONSTRUCTURAL IMPLEMENTATION
STRUCTURAL IMPLEMENTATION
 

Recently uploaded

一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
k4ncd0z
 
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFiTdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
nimaruinazawa258
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
beulahfernandes8
 
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
5spllj1l
 
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
University of Calabria
 
Earn a passive income with prosocial investing
Earn a passive income with prosocial investingEarn a passive income with prosocial investing
Earn a passive income with prosocial investing
Colin R. Turner
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
Majid Iqbal
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
AntoniaOwensDetwiler
 
University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
tscdzuip
 
1.2 Business Ideas Business Ideas Busine
1.2 Business Ideas Business Ideas Busine1.2 Business Ideas Business Ideas Busine
1.2 Business Ideas Business Ideas Busine
Lawrence101
 
Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)
AntoniaOwensDetwiler
 
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investmentsfalcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
Falcon Invoice Discounting
 
Discover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive GuidanceDiscover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive Guidance
36 Crypto
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
rlo9fxi
 
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
mayaclinic18
 
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptxOAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
hiddenlevers
 
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfOptimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
shruti1menon2
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
Commonwealth
 
Detailed power point presentation on compound interest and how it is calculated
Detailed power point presentation on compound interest  and how it is calculatedDetailed power point presentation on compound interest  and how it is calculated
Detailed power point presentation on compound interest and how it is calculated
KishanChaudhary23
 
Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...
Labour Market Information Council | Conseil de l’information sur le marché du travail
 

Recently uploaded (20)

一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
 
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFiTdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
 
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
 
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
 
Earn a passive income with prosocial investing
Earn a passive income with prosocial investingEarn a passive income with prosocial investing
Earn a passive income with prosocial investing
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
 
University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
 
1.2 Business Ideas Business Ideas Busine
1.2 Business Ideas Business Ideas Busine1.2 Business Ideas Business Ideas Busine
1.2 Business Ideas Business Ideas Busine
 
Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)
 
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investmentsfalcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
 
Discover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive GuidanceDiscover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive Guidance
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
 
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
 
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptxOAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
OAT_RI_Ep20 WeighingTheRisks_May24_Trade Wars.pptx
 
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfOptimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
 
Detailed power point presentation on compound interest and how it is calculated
Detailed power point presentation on compound interest  and how it is calculatedDetailed power point presentation on compound interest  and how it is calculated
Detailed power point presentation on compound interest and how it is calculated
 
Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...
 

Balance Of Payment

  • 1.
  • 4. GROUP : 1 Group Members : 1. Ajeesh M.K 2. Nisham M 3. Sajeesh 4. Swathy Vasudevan
  • 5. BALANCE OF PAYMENT • BOP is a statement listing receipts and payments in international transactions of a country. • Based on Double entry book-keeping concept. • Credit Balance Receipt of Foreign Exchange from abroad. • Debit Balance Payment in Foreign Exchange to foreign residents. • Equal debit and credit balances if entries are done properly.
  • 6. B O P ….  The Balance of Payments of a country is a systematic record of all economic transactions between the residents of a country and the rest of the world.  Presents a classified record of all receipts on account of goods exported, services rendered and capital received by residents and payments made by them on account of goods imported and services received from the capital transferred to non-residents or foreigners.  Economic Transactions – import and export (capital inflow & outflow as FII & FDI) • Residents - Individuals & fin. Institutions permanently residing in the country’s border.
  • 7. IMPORTANCE OF B.O.P  Records all the transactions that create demand for and supply of a currency.  Indicates demand-supply equation of the currency.  Confirm trend in economy’s international trade and exchange rate of the currency.  Indicate change or reversal in the trend.  Indicate policy shift of the monetary authority (RBI) of the country.
  • 8. TYPES OF ECONOMIC TRANSACTIONS  Cash Transactions  Payments & Receipts  Financial Securities  Barter system  Gifts & Donations (Payment/ Receipt)
  • 9. B.O.PACCOUNTING  BOP follows the accounting system of double entry.  Balance of payments accounting system (BOP) is an accounting system design to track buy and sell transactions between countries by an individuals, businesses and government agencies.  A double entry system in which each transaction creates a credit entry and a debit entry of equal value.  Buying goods and services creates debit entries and selling things produces credits entries.  The two BOP entries are used to denote the giving and receiving sides of external transactions.
  • 10. ASPECTS OF B.O.PACCOUNTING  Each economic transactions have a debit and credit aspect. CREDIT TRANSACTIONS DEBIT TRANSACTIONS Exports of goods & services Import of goods & services Income receivable from abroad Income payable abroad Transfers from abroad Transfers to abroad Increase in external liabilities Decrease in external liabilities Decrease in external assets Increase in external assets
  • 11. B.O.PACCOUNTING  The net sum of credit and debit entries is zero.  Data are collected from many sources - discrepancies between the entries occur for various reasons.  Omissions and inaccurate measurements may occur.  Equality between the sum of credit and debit entries is brought about by the inclusion of a balancing item which reflects net errors and omissions.
  • 12. B.O.P COMPONENTS  Current Account  Capital Account  Official reserve account
  • 13. CURRENT ACCOUNT  Represents the real income.  Includes : 1. Import of Goods 2. Balance of Merchandise Trade 3. Invisibles Balance of Trade : Export – Import Export > Import → Surplus BOT Export < Import → Deficit BOT Invisibles : Receipts & payments on : 1. Trade & services like tourism, transport etc 2. Interest, Dividend 3. Unilateral Transfers : Pension, Remittances, gifts
  • 14. CURRENT ACCOUNT…  Movement of Gold : Monetary or Non- monetary { Monetary : sale or purchase that influence international monetary reserves. }
  • 15. CAPITALACCOUNT  Consists changes in financial position of country.  Comprise short term and long term inflow and outflow of funds.  Credit side records official & private borrowings from abroad net of repayments, direct and portfolio investment and short term investments into the county, bank balances of non residents held in the country etc.  Debit side records dis-investment of capital invested into the country, the country’s investment abroad, loans given to a foreign government and bank balances held abroad.
  • 16. OFFICIAL RESERVE ACCOUNT  The surplus of capital and current account are transffered to ORA.  ORA can be used where there occurs future deficit.  Only reserve assets are included.  Reserve assets are those assets which the monetary authority of a country used to settle the trade , the surplus or deficit that arise on the capital and current account.  Includes: - The cash balance in Central Bank - Gold - Reserve in IMF
  • 17. B.O.P EQUILIBRIUM  Balance of payments equilibrium occurs when induced balance of payments transactions - those engineered by the government to influence the nominal exchange rate - are zero.  Implies that autonomous receipts from exports and the sale of securities abroad equal autonomous payments for imports and the purchase of securities from foreign residents.  Since changes in the stock of official reserves of foreign exchange are the method used by the authorities to fix or manipulate the exchange rate, BOP equilibrium requires that the stock of foreign exchange reserves be constant.
  • 18. B.O.P EQUILIBRIUM…  If debit on current account is greater than the credit, funds flow into the country that are recorded on the credit side of the capital account and the excess of debit is wiped out.  Ex-post Concept - Describes what has actually happened over a specific past period CURRENT ACCOUNT + CAPITAL ACCOUNT = 0
  • 19. B.O.P DISEQUILIBRIUM  Occurs when : Demand ≠ Supply Debit > Credit → Deficit
  • 20. B.O.P DISEQULIBRIUM - CAUSES 1. Development Schemes : - Huge investment in development schemes in developing countries Export ↓ Import ↑ → Structural changes in BOP 2. Price – Cost Structure : - Change in PCS of export industries affect export volume - Increase in price due to higher wages, high cost of raw material 3. Change in Foreign Exchange rate : - ↑ External value of money Import ↑ Export ↓ - ↓ External value of money Import ↓ Export ↑
  • 21. B.O.P DISEQULIBRIUM – CAUSES… 4. Fall in Export Demand : - increase in domestic production in rich countries. - loss of colonial markets. - more persistent in underdeveloped countries. 5. Demonstration Effect : - People in under developed countries tend to follow consumption pattern of developed countries imports increase and creates dis- equilibrium 6. International Borrowing & Lending : - Borrowing country have unfavorable bop – lending country have unfavorable bop
  • 22. B.O.P DISEQULIBRIUM – CAUSES… 7. Cyclical Fluctuations : During depression income of people in foreign countries fall → exports decrease → bop disequilibrium 8. Natural Factors : - Drought, floods etc adversely affect the country production. - Exports falls, imports increase leading to bop deficit. 9. Population Explosion : - Rapid growth of population → imports increase → decrease export capacity
  • 23.