The document discusses measuring the openness of an economy and the balance of payments. It defines an open economy as one that engages in transactions with other countries. The degree of openness is measured by the share of imports and exports as a proportion of GDP and the value of import duties. The balance of payments is a record of all transactions between a country and the rest of the world, including the current account, capital account, and components of each. The current account balance is exports minus imports plus net transfers. Disequilibria can occur if autonomous payments and receipts are not equal.
This document provides information about balance of payments (BOP) including:
- BOP is a systematic record of all economic transactions between a country and rest of world, including exports/imports of goods and services, as well as capital and financial flows.
- It has two main components - the current account which covers trade in goods and services, and the capital account which covers financial flows. It also includes unilateral transfers.
- A country aims to maintain a balanced BOP through various monetary and non-monetary policy measures that can influence exchange rates, imports/exports, and capital flows.
The document discusses the components of a country's balance of payments (BOP), which is a statistical record of its international transactions. It is presented as a double-entry bookkeeping statement with receipts and payments over a time period. The major components are the current account (exports, imports, services, income), capital account (investments, loans), and official reserve account (gold, foreign currency, SDRs). The current account balance is in surplus if receipts exceed payments and in deficit if payments exceed receipts. The capital account similarly shows a surplus if capital inflows exceed outflows. Overall BOP surplus or deficit depends on the combined balance of the current and capital accounts.
The document discusses the causes of disequilibrium in a country's balance of payments (BOP). Disequilibrium can occur when payments exceed receipts, creating a deficit, or when receipts exceed payments, creating a surplus. Common causes of deficit include population growth increasing import demand, development programs requiring imports, demonstration effects increasing consumption, natural disasters affecting trade, business cycles impacting exports, and inflation raising import prices. Poor marketing and capital flight can also contribute to BOP deficits.
The document discusses the Balance of Payments (BOP) statement of a country. It explains that the BOP records all monetary transactions between a country and the rest of the world over a period of time. It includes transactions by individuals, corporations, and the government. The BOP indicates whether a country has a trade surplus or deficit. It also helps the government monitor the economy and make fiscal and trade policy decisions. The BOP has three key accounts - the current account for goods and services, the capital account for asset transactions, and the financial account for investments and intangible assets. Maintaining a balanced BOP is important for economic stability.
This document discusses India's balance of payments. It begins by defining the balance of payments as a systematic record of all economic transactions between residents of a country and the rest of the world. It then explains the importance of the balance of payments for understanding currency demand and supply, exchange rates, and monetary policy shifts. The document outlines the key components of a balance of payments statement, including the current account, capital account, and errors and omissions. It also discusses accounting treatments for balance of payments surpluses and deficits and the effects of disequilibriums on the economy. In less than 3 sentences.
A fantastic PPT on balance of payments. The PPT includes a complete of the meaning and various concepts of balance of payments. It also discusses about the type of transactions recorded in BOP and various types of accounts.
The document discusses the balance of payments (BOP) of a country. It defines BOP as a systematic record of all economic transactions between residents of a country and foreign countries over a period of time. The BOP has two main components - the current account which includes trade in goods and services and investment income, and the capital account which covers financial flows. For a balanced BOP, the total credits from foreign transactions must equal total debits. A surplus means receipts exceed payments, while a deficit means payments exceed receipts. BOP statistics are important for governments and businesses to monitor currency movements and inform economic policies.
This presentation discusses the balance of payments of India. It begins with defining the balance of payments as a systematic record of all monetary transactions between a country and other countries over a period of time, usually one year. It then discusses India's balance of payments position from 1985-2005, noting it experienced deficits from 1985-1990 but surpluses from 2001-2005. The presentation outlines the main components of a balance of payments statement including the current account, capital account, reserve accounts, and errors and omissions. It discusses the importance of monitoring a country's balance of payments and concludes with causes of imbalances and measures to correct adverse balance of payments situations.
This document provides information about balance of payments (BOP) including:
- BOP is a systematic record of all economic transactions between a country and rest of world, including exports/imports of goods and services, as well as capital and financial flows.
- It has two main components - the current account which covers trade in goods and services, and the capital account which covers financial flows. It also includes unilateral transfers.
- A country aims to maintain a balanced BOP through various monetary and non-monetary policy measures that can influence exchange rates, imports/exports, and capital flows.
The document discusses the components of a country's balance of payments (BOP), which is a statistical record of its international transactions. It is presented as a double-entry bookkeeping statement with receipts and payments over a time period. The major components are the current account (exports, imports, services, income), capital account (investments, loans), and official reserve account (gold, foreign currency, SDRs). The current account balance is in surplus if receipts exceed payments and in deficit if payments exceed receipts. The capital account similarly shows a surplus if capital inflows exceed outflows. Overall BOP surplus or deficit depends on the combined balance of the current and capital accounts.
The document discusses the causes of disequilibrium in a country's balance of payments (BOP). Disequilibrium can occur when payments exceed receipts, creating a deficit, or when receipts exceed payments, creating a surplus. Common causes of deficit include population growth increasing import demand, development programs requiring imports, demonstration effects increasing consumption, natural disasters affecting trade, business cycles impacting exports, and inflation raising import prices. Poor marketing and capital flight can also contribute to BOP deficits.
The document discusses the Balance of Payments (BOP) statement of a country. It explains that the BOP records all monetary transactions between a country and the rest of the world over a period of time. It includes transactions by individuals, corporations, and the government. The BOP indicates whether a country has a trade surplus or deficit. It also helps the government monitor the economy and make fiscal and trade policy decisions. The BOP has three key accounts - the current account for goods and services, the capital account for asset transactions, and the financial account for investments and intangible assets. Maintaining a balanced BOP is important for economic stability.
This document discusses India's balance of payments. It begins by defining the balance of payments as a systematic record of all economic transactions between residents of a country and the rest of the world. It then explains the importance of the balance of payments for understanding currency demand and supply, exchange rates, and monetary policy shifts. The document outlines the key components of a balance of payments statement, including the current account, capital account, and errors and omissions. It also discusses accounting treatments for balance of payments surpluses and deficits and the effects of disequilibriums on the economy. In less than 3 sentences.
A fantastic PPT on balance of payments. The PPT includes a complete of the meaning and various concepts of balance of payments. It also discusses about the type of transactions recorded in BOP and various types of accounts.
The document discusses the balance of payments (BOP) of a country. It defines BOP as a systematic record of all economic transactions between residents of a country and foreign countries over a period of time. The BOP has two main components - the current account which includes trade in goods and services and investment income, and the capital account which covers financial flows. For a balanced BOP, the total credits from foreign transactions must equal total debits. A surplus means receipts exceed payments, while a deficit means payments exceed receipts. BOP statistics are important for governments and businesses to monitor currency movements and inform economic policies.
This presentation discusses the balance of payments of India. It begins with defining the balance of payments as a systematic record of all monetary transactions between a country and other countries over a period of time, usually one year. It then discusses India's balance of payments position from 1985-2005, noting it experienced deficits from 1985-1990 but surpluses from 2001-2005. The presentation outlines the main components of a balance of payments statement including the current account, capital account, reserve accounts, and errors and omissions. It discusses the importance of monitoring a country's balance of payments and concludes with causes of imbalances and measures to correct adverse balance of payments situations.
The document summarizes the significance of a country's balance of payments (BOP). It discusses how the BOP:
1) Provides detailed information about the supply and demand of a country's currency through trade statistics in the current account and capital flows.
2) Helps evaluate a country's economic performance in international trade.
3) Identifies appropriate trading partners and provides economic information about countries.
The BOP is recorded using double-entry bookkeeping and composed of current, capital, and official reserve accounts. It impacts currency values, with current account deficits putting downward pressure and capital account surpluses creating upward pressure, and can result in BOP crises. Examples are provided.
The document discusses the Balance of Payments (BOP) statement, which tracks all economic transactions between a country and foreign residents over a period of time. The BOP includes the current account, which records trade in goods/services and income flows, and the capital account, which tracks long-term and short-term cross-border investment and lending. If exports exceed imports in the current account, there is a trade surplus, while a deficit occurs if imports exceed exports. The overall BOP balance factors in the balances of both accounts plus any statistical errors. A surplus permits repayment of past loans, while a deficit requires arranging additional capital inflows.
The document provides an overview of balance of payments accounts, including:
- The balance of payments records a country's international transactions and is presented as double-entry bookkeeping. It includes the current account, capital account, and official reserve account.
- The current account records trade in goods, services, investment income, and transfers. A deficit means imports exceed exports.
- The capital account records cross-border investment and flows of assets. It includes foreign direct investment, portfolio investment, and other investments.
- Together, the accounts must net to zero to balance according to the balance of payments identity. Surpluses and deficits impact currency valuation and the economy.
This document provides information about a seminar presentation on the balance of payments. It defines the balance of payments as a systematic record of all economic transactions between residents of a country and the rest of the world. It discusses the key components of the balance of payments including the current account, capital account, and official reserve account. It also covers topics such as balance of payments equilibrium and disequilibrium, and causes of imbalance.
The document provides an overview of a country's balance of payments (BOP). It discusses the key components of the BOP including the current account, capital account, and reserve account. The current account records trade flows and investment income, while the capital account records flows of financial capital. Together these must net to zero according to the BOP identity. A country's BOP data can provide insights into competitiveness and capital flows over time. Monetary and fiscal policies can impact BOP components and exchange rates through their effects on growth, inflation, and interest rates.
The document summarizes the key aspects of a country's balance of payments (BOP), including:
1) The BOP records all economic transactions between a country's residents and the rest of the world in a given period, usually one year. It has both a current account and a capital/financial account.
2) A BOP deficit can put pressure on a country's exchange rate and signals the need for corrective measures.
3) Measures to correct a deficit include reducing imports through monetary steps like devaluation or non-monetary steps like tariffs and quotas.
The document discusses key concepts related to a country's balance of payments (BOP), including:
- The BOP is a systematic record of all economic transactions between a country and the rest of the world, including exports/imports of goods and services, income flows, and financial transactions.
- The BOP has current, capital, and financial accounts that classify transactions as credits or debits depending on whether they increase or decrease a country's foreign reserves.
- A country's BOP is influenced by macroeconomic factors like GDP, exchange rates, and interest rates and can indicate trends in the economy. Deficits may arise during a country's development due to imports of capital goods.
The balance of payments records all economic transactions between a country and the rest of the world. It includes credits from exports, services, and capital inflows, as well as debits from imports, services received, and capital outflows. A country's balance of payments is influenced by factors like its stage of economic development, national income changes, inflation, borrowing and lending amounts, and exchange rate fluctuations. A developing country often runs a balance of payments deficit as it imports machinery and capital goods to fuel industrialization.
India's balance of payments often shows a deficit as the country requires imports of machinery, technology, and capital goods to fuel industrialization. In recent years, India's current account deficit has narrowed due to a contraction in imports outpacing the decline in exports. While FDI inflows have increased, portfolio investment has declined. Remittances from Indians overseas have also marginally decreased. Overall, India's foreign exchange reserves have seen a small accretion on balance of payments basis. Common reasons for India's poor export performance include high prices, quality issues, lack of marketing skills, inadequate promotion, and poor infrastructure.
India's balance of payments often shows a deficit as the country requires imports of machinery, technology, and capital goods to fuel industrialization. In recent years, India's current account deficit has narrowed due to a contraction in imports outpacing the decline in exports. While FDI inflows have increased, portfolio investment has declined. Remittances from Indians overseas have also marginally decreased. Overall, India's foreign exchange reserves have seen a small accretion on balance of payments basis. Common reasons for India's poor export performance include high prices, quality issues, lack of marketing skills, inadequate promotion, and poor infrastructure.
The balance of payments records all economic transactions between a country and the rest of the world over a period of time. It includes visible items like exports and imports of goods, as well as invisible items like services. If receipts are greater than payments, the balance of payments is in surplus, while a deficit occurs when payments exceed receipts. Maintaining a balanced balance of payments is important for a country's economic stability. Various policy tools like exchange rate adjustments, import restrictions, export subsidies, and monetary and fiscal policies can be used to correct disequilibriums.
The balance of payments records all economic transactions between a country and the rest of the world over a period of time. It includes visible items like exports and imports of goods, as well as invisible items like services. It also includes capital transfers. The balance of payments aims to systematically record all these international transactions and ensure receipts and payments are balanced. A country may experience a surplus or deficit in its balance of payments depending on whether receipts from transactions exceed payments or vice versa. Disequilibria can be corrected through various monetary and non-monetary measures that target exchange rates, exports, imports and capital flows.
The document discusses the balance of payments (BOP) of a country. It defines BOP as a systematic record of all economic transactions between residents of a country and the rest of the world over a given period of time. The BOP has two components - the current account, which records trade in goods and services as well as income and transfers, and the capital account, which covers financial transactions such as investments. A disequilibrium in the BOP can result in a surplus or deficit. The government can employ various monetary and non-monetary measures to correct a BOP disequilibrium, such as depreciating the currency, increasing exports, reducing imports, and implementing fiscal policies.
The document provides information about a country's Balance of Payments (BOP), including:
- BOP is a systematic record of all economic transactions between residents of a country and the rest of the world over a period of time.
- The key components of BOP are the current account (covering trade in goods and services), capital account (covering movement of capital), and official reserves account.
- Disequilibriums in BOP can be caused by economic, political, and social factors and governments use various monetary, trade, and other measures to correct BOP deficits.
This document discusses accounting principles for balance of payments (BOP) accounting. It outlines that BOP accounting follows double-entry bookkeeping, with debits equal to credits. Transactions are recorded based on whether they represent payments from or receipts to a country. Exports are credited on the current account and debited on the capital account. Imports are debited on the current account and credited on the capital account. The BOP consists of the current account balance, capital and financial account balance, and official settlements account balance. Valuation and timing of recording transactions can pose challenges to uniform BOP accounting practices.
The document summarizes India's balance of payments (BOP) over several years. It finds that:
1. India's trade balance has consistently been in deficit as imports have exceeded exports. Imports of petroleum products in particular have increased steadily.
2. The current account, which includes both visible and invisible items, recorded deficits from 1990-2001 but surpluses in 2003-2004 and 2005-2006. Invisibles like services and remittances have helped cover trade deficits.
3. Capital account has remained positive due to large inflows of foreign direct investment, foreign institutional investment, and deposits from non-resident Indians. Foreign exchange reserves have fluctuated depending on current and capital accounts.
The document discusses the Balance of Payments (BOP) of a country. It defines BOP as a systematic record of all economic transactions between residents of a country and the rest of the world over a given time period. BOP has three key components - the current account, capital account, and reserve account. The current account records exports/imports of goods and services. A surplus in the current account means exports exceed imports, while a deficit means the opposite. The capital account records international investment flows. Disequilibriums in BOP can be addressed through monetary, fiscal and trade policies that aim to boost exports and curb imports.
The document discusses the balance of payments (BOP), which records all economic transactions between residents of a country and the rest of the world. The BOP provides valuable information to governments and affects exchange rates, interest rates, and price levels. It includes exports and imports, services, financial investments, government transactions, and unilateral transfers. A BOP deficit occurs when payments abroad exceed receipts, while a surplus happens when receipts are greater than payments. Deficits must be financed through borrowing or selling foreign assets.
The document discusses the Balance of Payments (BOP) of a country. It defines BOP as a systematic record of all economic transactions between residents of a country and the rest of the world over a given time period. BOP has three key components - the current account, capital account, and reserve account. The current account covers visible and invisible trade, while the capital account covers financial flows. A country experiences a BOP surplus if receipts exceed payments, and a deficit if payments exceed receipts. The document outlines various factors that can cause BOP disequilibria and measures to correct imbalances, such as monetary policy tools, export promotion, and import controls.
Balance of payments accounting records all transactions between citizens of a country and those of other nations within a given period. It is reported using a double-entry system to inform governments about a country's international financial position and assist with monetary, trade, and payments policies. Debits record outflows and credits record inflows, with the overall balance of payments being the sum of the current account (goods, services, transfers) and the capital account (financial/investment flows and official reserves). A surplus means reserves increase while a deficit means they decrease.
The document summarizes the significance of a country's balance of payments (BOP). It discusses how the BOP:
1) Provides detailed information about the supply and demand of a country's currency through trade statistics in the current account and capital flows.
2) Helps evaluate a country's economic performance in international trade.
3) Identifies appropriate trading partners and provides economic information about countries.
The BOP is recorded using double-entry bookkeeping and composed of current, capital, and official reserve accounts. It impacts currency values, with current account deficits putting downward pressure and capital account surpluses creating upward pressure, and can result in BOP crises. Examples are provided.
The document discusses the Balance of Payments (BOP) statement, which tracks all economic transactions between a country and foreign residents over a period of time. The BOP includes the current account, which records trade in goods/services and income flows, and the capital account, which tracks long-term and short-term cross-border investment and lending. If exports exceed imports in the current account, there is a trade surplus, while a deficit occurs if imports exceed exports. The overall BOP balance factors in the balances of both accounts plus any statistical errors. A surplus permits repayment of past loans, while a deficit requires arranging additional capital inflows.
The document provides an overview of balance of payments accounts, including:
- The balance of payments records a country's international transactions and is presented as double-entry bookkeeping. It includes the current account, capital account, and official reserve account.
- The current account records trade in goods, services, investment income, and transfers. A deficit means imports exceed exports.
- The capital account records cross-border investment and flows of assets. It includes foreign direct investment, portfolio investment, and other investments.
- Together, the accounts must net to zero to balance according to the balance of payments identity. Surpluses and deficits impact currency valuation and the economy.
This document provides information about a seminar presentation on the balance of payments. It defines the balance of payments as a systematic record of all economic transactions between residents of a country and the rest of the world. It discusses the key components of the balance of payments including the current account, capital account, and official reserve account. It also covers topics such as balance of payments equilibrium and disequilibrium, and causes of imbalance.
The document provides an overview of a country's balance of payments (BOP). It discusses the key components of the BOP including the current account, capital account, and reserve account. The current account records trade flows and investment income, while the capital account records flows of financial capital. Together these must net to zero according to the BOP identity. A country's BOP data can provide insights into competitiveness and capital flows over time. Monetary and fiscal policies can impact BOP components and exchange rates through their effects on growth, inflation, and interest rates.
The document summarizes the key aspects of a country's balance of payments (BOP), including:
1) The BOP records all economic transactions between a country's residents and the rest of the world in a given period, usually one year. It has both a current account and a capital/financial account.
2) A BOP deficit can put pressure on a country's exchange rate and signals the need for corrective measures.
3) Measures to correct a deficit include reducing imports through monetary steps like devaluation or non-monetary steps like tariffs and quotas.
The document discusses key concepts related to a country's balance of payments (BOP), including:
- The BOP is a systematic record of all economic transactions between a country and the rest of the world, including exports/imports of goods and services, income flows, and financial transactions.
- The BOP has current, capital, and financial accounts that classify transactions as credits or debits depending on whether they increase or decrease a country's foreign reserves.
- A country's BOP is influenced by macroeconomic factors like GDP, exchange rates, and interest rates and can indicate trends in the economy. Deficits may arise during a country's development due to imports of capital goods.
The balance of payments records all economic transactions between a country and the rest of the world. It includes credits from exports, services, and capital inflows, as well as debits from imports, services received, and capital outflows. A country's balance of payments is influenced by factors like its stage of economic development, national income changes, inflation, borrowing and lending amounts, and exchange rate fluctuations. A developing country often runs a balance of payments deficit as it imports machinery and capital goods to fuel industrialization.
India's balance of payments often shows a deficit as the country requires imports of machinery, technology, and capital goods to fuel industrialization. In recent years, India's current account deficit has narrowed due to a contraction in imports outpacing the decline in exports. While FDI inflows have increased, portfolio investment has declined. Remittances from Indians overseas have also marginally decreased. Overall, India's foreign exchange reserves have seen a small accretion on balance of payments basis. Common reasons for India's poor export performance include high prices, quality issues, lack of marketing skills, inadequate promotion, and poor infrastructure.
India's balance of payments often shows a deficit as the country requires imports of machinery, technology, and capital goods to fuel industrialization. In recent years, India's current account deficit has narrowed due to a contraction in imports outpacing the decline in exports. While FDI inflows have increased, portfolio investment has declined. Remittances from Indians overseas have also marginally decreased. Overall, India's foreign exchange reserves have seen a small accretion on balance of payments basis. Common reasons for India's poor export performance include high prices, quality issues, lack of marketing skills, inadequate promotion, and poor infrastructure.
The balance of payments records all economic transactions between a country and the rest of the world over a period of time. It includes visible items like exports and imports of goods, as well as invisible items like services. If receipts are greater than payments, the balance of payments is in surplus, while a deficit occurs when payments exceed receipts. Maintaining a balanced balance of payments is important for a country's economic stability. Various policy tools like exchange rate adjustments, import restrictions, export subsidies, and monetary and fiscal policies can be used to correct disequilibriums.
The balance of payments records all economic transactions between a country and the rest of the world over a period of time. It includes visible items like exports and imports of goods, as well as invisible items like services. It also includes capital transfers. The balance of payments aims to systematically record all these international transactions and ensure receipts and payments are balanced. A country may experience a surplus or deficit in its balance of payments depending on whether receipts from transactions exceed payments or vice versa. Disequilibria can be corrected through various monetary and non-monetary measures that target exchange rates, exports, imports and capital flows.
The document discusses the balance of payments (BOP) of a country. It defines BOP as a systematic record of all economic transactions between residents of a country and the rest of the world over a given period of time. The BOP has two components - the current account, which records trade in goods and services as well as income and transfers, and the capital account, which covers financial transactions such as investments. A disequilibrium in the BOP can result in a surplus or deficit. The government can employ various monetary and non-monetary measures to correct a BOP disequilibrium, such as depreciating the currency, increasing exports, reducing imports, and implementing fiscal policies.
The document provides information about a country's Balance of Payments (BOP), including:
- BOP is a systematic record of all economic transactions between residents of a country and the rest of the world over a period of time.
- The key components of BOP are the current account (covering trade in goods and services), capital account (covering movement of capital), and official reserves account.
- Disequilibriums in BOP can be caused by economic, political, and social factors and governments use various monetary, trade, and other measures to correct BOP deficits.
This document discusses accounting principles for balance of payments (BOP) accounting. It outlines that BOP accounting follows double-entry bookkeeping, with debits equal to credits. Transactions are recorded based on whether they represent payments from or receipts to a country. Exports are credited on the current account and debited on the capital account. Imports are debited on the current account and credited on the capital account. The BOP consists of the current account balance, capital and financial account balance, and official settlements account balance. Valuation and timing of recording transactions can pose challenges to uniform BOP accounting practices.
The document summarizes India's balance of payments (BOP) over several years. It finds that:
1. India's trade balance has consistently been in deficit as imports have exceeded exports. Imports of petroleum products in particular have increased steadily.
2. The current account, which includes both visible and invisible items, recorded deficits from 1990-2001 but surpluses in 2003-2004 and 2005-2006. Invisibles like services and remittances have helped cover trade deficits.
3. Capital account has remained positive due to large inflows of foreign direct investment, foreign institutional investment, and deposits from non-resident Indians. Foreign exchange reserves have fluctuated depending on current and capital accounts.
The document discusses the Balance of Payments (BOP) of a country. It defines BOP as a systematic record of all economic transactions between residents of a country and the rest of the world over a given time period. BOP has three key components - the current account, capital account, and reserve account. The current account records exports/imports of goods and services. A surplus in the current account means exports exceed imports, while a deficit means the opposite. The capital account records international investment flows. Disequilibriums in BOP can be addressed through monetary, fiscal and trade policies that aim to boost exports and curb imports.
The document discusses the balance of payments (BOP), which records all economic transactions between residents of a country and the rest of the world. The BOP provides valuable information to governments and affects exchange rates, interest rates, and price levels. It includes exports and imports, services, financial investments, government transactions, and unilateral transfers. A BOP deficit occurs when payments abroad exceed receipts, while a surplus happens when receipts are greater than payments. Deficits must be financed through borrowing or selling foreign assets.
The document discusses the Balance of Payments (BOP) of a country. It defines BOP as a systematic record of all economic transactions between residents of a country and the rest of the world over a given time period. BOP has three key components - the current account, capital account, and reserve account. The current account covers visible and invisible trade, while the capital account covers financial flows. A country experiences a BOP surplus if receipts exceed payments, and a deficit if payments exceed receipts. The document outlines various factors that can cause BOP disequilibria and measures to correct imbalances, such as monetary policy tools, export promotion, and import controls.
Balance of payments accounting records all transactions between citizens of a country and those of other nations within a given period. It is reported using a double-entry system to inform governments about a country's international financial position and assist with monetary, trade, and payments policies. Debits record outflows and credits record inflows, with the overall balance of payments being the sum of the current account (goods, services, transfers) and the capital account (financial/investment flows and official reserves). A surplus means reserves increase while a deficit means they decrease.
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
How to Create a More Engaging and Human Online Learning Experience
BOP and BOT.pdf
1. Unit 5: Open Economy and Macroeconomic Policy
St. Xavier’s College (Autonomous), Kolkata
MACROECONOMICS
Dr. Jayita Bit
2. How to measure openness of the
economy?
¨ If a country is engaged in transactions with any
other foreign country, then the concerned country
is considered to be an open economy.
¨ The degree of openness depends on the following:
1. The share of import and export (share of foreign
trade) as a proportion of total value of GDP.
n Greater the value à greater the degree of openness
(Widely used)
2. Value of import duties as proportion of total value of
imports
n Lesser the value à greater the degree of openness
2
Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
3. Openness of the economy refers to three
important factors:
1. Goods market openness: Trade of goods and
services across borders
(e.g. Trade of commodities)
2. Capital market openness: Trade of financial assets
across countries (only financial capital not physical
capital)
(e.g. Investors choosing between foreign and domestic assets, suppose
foreigner purchasing share of domestic company)
3. Factor market openness: Movement of factors of
production across national boundaries
(e.g. MNCs employing workers from different countries)
3 Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
4. The Balance of Payments (BoP)
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
5. The Balance of Payments (BoP)
¨ The Balance of Payments (BoP) is a systematic
record of all transactions between the economic
units of a country (households & firms) and the
rest of the world.
¨ The BoP of a country is a comprehensive
measure/statement of
¤ all the receipts of a country from rest of the world
(RoW) and
¤ all the payments by the country to the Rest of the
world (RoW).
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
6. The Balance of Payments (BoP) contd..
¨ The values are usually expressed
¤ either in terms of the domestic currency
¤ or in terms of Internationally/Universally accepted
currency like dollars ($)
¨ Classification of BoP:
¤ Current account (CA)
¤ Capital Account (KA)
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
7. Receipts and Payments of a country can
arise in four ways
7
Balance of
Payments (BoP)
Balance of Current
Account (CAB)
Balance of Trade
Trade in Visibles
(1) Export and
Import of Goods
Trade in Invisibles
(2) Export and
Import of Services
Unilateral
Transfers
(3) Gifts and
Grants
Balance of Capital
Account (KAB)
(4)Capital Inflow
and Outflow
Note: No obligations as Repayments
(That is why CA)
Note: Obligations as
Repayments
(That is why KA)
Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
8. Balance in Current Account (CAB)
¨ CAB = Total Receipt – Total Payments
= (Receipts from Visible and invisible exports + Unilateral Receipts)
– (Payments for visible and invisible imports + Unilateral Payments)
or, CAB = Balance of Trade + Net Unilateral Transfers
Or, CAB = Value of Exports – Value of Imports + Net Transfers from Abroad
= Net Exports + Net Transfers from Abroad
If CAB > 0
à the country has current account surplus à favourable balance in CA
If CAB < 0
à the country has current account deficit à unfavourable balance in CA
If CAB = 0
à the country has current account balance
8 Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
9. Balance of Trade (BoT) and Net Transfer from
Abroad
¨ Net Export is nothing but trade balance (BoT)
¤ BoT> 0 à Trade Surplus
¤ BoT< 0 à Trade Deficit
¤ BoT= 0 à Balance in Trade Balance
¨ If Net Transfer from Abroad > 0
¤ It implies that, foreign residents are transferring
less out of India (e.g. Gifts, Remittances) than
Indians are transferring from abroad.
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
10. Current account à No obligations
¨ Note that, all items in the current account of the
BoP have the characteristics that they do not
affect the assets and future liabilities of the
citizens and institutions of the country or it’s
government.
¨ These are current receipts and payments without
any implications in the future.
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
11. Balance in Capital Account (KAB)
¨ For Capital Account the transaction gives rise to
future claims such as acquiring foreign assets or
shares in companies located abroad.
¨ Note: Capital account transactions yield interest income for domestic
citizens and shareholders from next period onwards and this constitute a
part of current account transactions
Capital Accounts Balance (KAB)
= Receipt from sale of assets to foreigners
– spending on buying assets from foreigners
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
12. Balance in Capital Account (KAB)
12
Balance of Capital
Account (KAB)
A. Capital
Receipts
(i) Foreign
Investments
[1] Foreign Direct
Investment (FDI)
[2] Foreign Portfolio
Investment (FPI)
(ii) External
Borrowing
[1] Commercial
Borrowing
[2] As a form of
Aid
[3] In banks as
Fixed Deposits
(iii) Recovery of
External Loan
B. Capital Payments
(i) International
Investment
(ii) External
Lending
[1] Commercial
lending
[2] As a form of
Aid
[3] Capital
payments by the
banks
Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
13. A. Capital Receipts: Components
(i) Foreign Investments
n [1] Foreign Direct Investment (FDI): In this case, the investor has real control over the
assets. e.g. If a foreigner sets up a factory in India or buys an Indian firm or purchases a
significant percentage of shares of an Indian company it is considered as FDI;
n [2] Foreign Portfolio Investment (FPI): Here the investors do not purchase significant
share of an Indian company. e.g. If a foreigner buys less than 10% of the shares of an
Indian Company, it is treated as FPI;
(ii) External Borrowing
n [1] Commercial Borrowing: Domestic country may borrow from abroad for commercial
purposes like opening up a factory and the loans taken on the rate of interest.
n [2] As a form of Aid: Domestic company borrowing from abroad in a situation of
economic crisis and the loan is taken on lower rate of interest.
n [3] In banks as Fixed Deposits: Some commercial banks in India are authorized by RBI
receive deposits in foreign currency. It can give fixed deposits in banks and this will also
be considered as investment from foreigners.
(iii) Recovery of External Loan: If foreign country pays back the loans which they had taken
earlier, flow of capital increases in the given year.
13 Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
14. B. Capital Payments: Components
(i) International Investment: Investment in foreign countries in terms of
buying shares of foreign companies or buying any foreign assets.
(ii) External Lending: It can be of three types (similar to external barriers)
n [1] Commercial Lending: lending for commercial purpose
n [2] As a form of Aid: Lending as a formal aid (to help)
n [3] Capital payments by the banks: when the fixed deposits of the NRI
becomes matured for repayment and they are not renewed
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
15. Balance of Payment (BoP) of a country
¨ Export of visibles
¨ Export of invisibles
¨ Unilateral Receipts
¨ Capital Receipts
Inflow of foreign
currency (credit)
¨ Import of visibles
¨ Import of invisibles
¨ Unilateral Payments
¨ Capital Payments
Outflow of foreign
currency (Debit)
RECEIPTS PAYMENTS
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
16. Can there be any disequilibrium in the Balance
of Payment (BoP) of a country?
¨ In the accounting sense, there can not be any disequilibrium in the BoP. Any tendency
towards such inequality will be corrected by accommodating transactions. However in
economic sense, there is no reason to believe there cant be disequilibrium in the BoP.
¨ If receipts from the rest of the world (other than accommodating receipts) falls short
of payments to the RoW (other than accommodating payments), there will be BoP
deficit
i.e. If,
receipts from RoW (except accommodating receipts) <payments to the RoW (except
accommodating payments)
àThere will be BoP deficit
¨ If Payments to the rest of the world (other than accommodating payments ) falls short
of receipts from the RoW (other than accommodating receipts), there will be BoP
Surplus
i.e. If,
receipts from RoW (except accommodating receipts) > payments to the RoW (except
accommodating payments)
à There will be BoP Surplus
16 Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
17. Can there be any disequilibrium in the Balance of
Payment (BoP) of a country? Contd…
¨ In economic sense, the BoP is in equilibrium only when,
autonomous payments to the RoW = autonomous receipts from RoW.
BoP in equilibrium when,
Total value of Receipts = Total value of payments
à Balance on CA and KA
Suppose there is imbalance in CA and KA
Imbalance in CA: 1) Surplus
2) Deficit
Imbalance in KA: 1) Surplus
2) Deficit
E.g. CA deficit = 60
KA surplus = 40
17
BoP Deficit of 20
Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
18. Disequilibrium to Equilibrium in BoP of a country
(in Economic sense)
18
Disequilibrium in BoP
of a country
Deficit in BoP a/c
Equilibrium in BoP of a
country
Surplus in BoP a/c
Autonomous Receipts
are less than (<)
Autonomous Payments
Autonomous Receipts are
More than (>) Autonomous
Payments
Accommodating
Capital Receipts
Accommodating
Capital Payments
Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
19. ¨ Lack of foreign currencies
à Central Bank buys foreign
exchange from domestic
citizens & in return gives
domestic currencies
à BoP in balance because of
inflow of foreign
currencies
à Money Supply rises
¨ Excess supply of foreign
currencies
à Central Bank sells foreign
exchange to domestic
citizens & in return takes
domestic currencies
à BoP in balance because of
outflow of foreign
currencies
à Money Supply falls
BoP Deficit
Receipts < Payments
BoP Surplus
Receipts > Payments
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
20. Basic Accounting Rule of BoP
¨ Any transaction leading to a net receipt of foreign exchange creates a surplus
or credit in the corresponding account
¨ Any transaction leading to a net payment of foreign exchange creates a deficit
or debit in the corresponding account
¨ If, India’s Export > Import by India
èNet Export (NX) >0 è current account surplus
¨ If, India’s Export <Import by India
èNet Export (NX) <0 è current account deficit
¨ If Sales of Bonds to foreigners > Purchase of foreign bonds
(borrowing from abroad) > (lending to foreigners)
è Surplus in Capital account (KA) [reason: acquiring foreign currency]
¨ If Sales of Bonds to foreigners < Purchase of foreign bonds
(borrowing from abroad) < (lending to foreigners)
è Deficit in Capital account (KA) [reason: foreign currency depletion]
Hence, Surplus in KA à Net Inflow and Deficit in KA à Net Outflow
20 Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
21. Basic Accounting Rule of BoP contd..
¨ When India borrows from abroad to fill up the gap between export and import, it’s
current account deficit is offset by capital account surplus
¨ Repayment of foreign Loan à Deficit in Capital account
[Reason: it involves payments (outflow) of foreign exchange]
¨ An increase in country’s foreign assets or A decrease in country’s foreign liability à
Debit Entry
¨ An increase in foreign asset à is a purchase or import of assets
à Hence ‘Imports’ in CA or KA carries a –ve (-) sign
à It is associated with payments to foreigners à Debit
¨ A decrease in country’s foreign assets or An increase in country’s foreign liability à
Credit Entry
¨ A decrease in foreign asset à is a sale or export of assets
à Hence ‘Exports’ in CA or KA carries a +ve (+) sign
à It is associated with receipts from foreigners à Credit
21 Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
22. An important Identity
(Balance of Payment always balances)
¨ Asset Trade has two components:
A) Trade among private Citizens (Private capital Account)
B) Purchase and Sale by Central Bank of the country (Official Reserve
Transactions or ORT)
Given this we have,
Current account balance + Capital account balance + ORT = 0
Or, CAB + KAB + ORT = 0
Example: Suppose India exports iron ore to Japan.
Any three of the following will take place:-
A) There can be equal amount of import from Japan, such that, KAB=ORT=0;
B) Credit extended by Indian exporter to Japanese importer. à Capital outflow
from India àCAB>0 & KAB<0; ORT=0
C) Official intervention i.e. Japanese importer sells Yen to get INR. à CAB>0,
KAB=0, ORT<0 (RBI holding ‘Yen’, a foreign asset increases)
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Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
23. An important identity
(Balance of Payment always balances) contd..
¨ If importer gets INR by selling Yen to the bank of Japan, even then ORT<0 for India
[since Bank of Japan’s stock of INR decreases and it is a debit component in India’s capital
account(KA)]
¨ Alternatively, if we assume that foreign exchange is the only type of foreign asset the central
bank is holding,
¨ Note that,
¨ Hence,
¨ Surplus in BoP à increase in FER
àfall in ORT (affects monetary base) à Ms rises through money multiplier
¨ Deficit in BoP à decrease in FER
àrise in ORT (affects monetary base) à Ms falls through money multiplier
23 Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata
24. For each of the following transactions state to which account
(current/capital) in India’s BoP it belongs and whether it is a
surplus (credit) or Deficit (Debit) item. (Hint answers)
1. Purchase of South Korean Camera by an Indian Citizen.
Ans. Import of goods (visible) à Deficit (Debit) in Current account
2. Purchase of share of Indian Company by a German Mutual Find
Ans. Capital Inflow à Surplus (Credit) in capital Account
3. Govt. of India borrowing from US bank
Ans. Net Capital Inflow àSurplus(Credit) in capital account
4. Export of handmade cotton fabric from India to Australia
Ans. Export of goods à Credit (Surplus) in current account
5. An Indonesian tourist paying in cash for a stay in a hotel in Delhi
Ans. Export of services (Invisible) àCredit (Surplus) in current account
6. An Indian citizen purchases a house in Sao Paolo, Brazil
Ans. Spending on purchase of asset abroad from foreigners
à Deficit (Debit) in capital account
7. An US investor making a deposit in State Bank of India
Ans. Net Capital Inflow à Surplus (Credit) in Capital account
24 Dr. Jayita Bit_St. Xavier's College (Autonomous), Kolkata