Discuss the importance of the balance of payments

Assignment Help Business Economics
Reference no: EM132225249

One of the more important measures in regard to international economics is the balance of payments. Think of it as a national accounting measure that looks at the flow of goods and services into and out of an economy in a given period of time. It also shows capital flows into and out of a country.

Until 1980, the United States tended to run a positive-to-neutral balance of payments position and was a creditor nation. In the course of the past 30 years, the United States has moved to a negative balance of payments and to being a debtor nation.

Review and discuss the following:

- Discuss the importance of the balance of payments as an accounting measure.

- Discuss the current account and its components and the capital and financial accounts and their components.

- How important is the U.S. deficit in traded goods in regard to the balance of payments?

Attachment:- Assignment overview.rar

Verified Expert

Balance of payment demonstrates the volume of exports and imports in the country and differences between them. Analysis of balance of payment is significant for any country as it denotes the growth of any country in terms of how much is domestic industries are able to provide goods and services to outside nation and how much is needed to take from outside countries in order to fulfill the needs and demand of residents. Balance of payment thus provide the flow of goods in and outside the economy at the given period of time.

Reference no: EM132225249

Questions Cloud

Master production schedule available to promise : aster Production Schedule "Available To Promise (1-period look ahead)" What is the POHI value for Period 1?
Human resource function for workplace violence : Identify and select three companies that have developed exemplary practices in the human resource function for workplace violence.
Prepare the monthly sales revenue and cash collection budget : ACC00146 MANAGEMENT ACCOUNTING ASSIGNMENT, Southern Cross University, Australia. Prepare the Monthly Sales Revenue and Cash Collection Budget
Application to international student advisor for transfer : You need to write application to International Student Advisor for transfer to another University
Discuss the importance of the balance of payments : Discuss the importance of the balance of payments as an accounting measure - Discuss the current account and its components and the capital
Investigate variations in haematological parameters : What proportion of total blood volume is occupied by erythrocytes - How much haemoglobin (Hb) is there per unit blood volume and per RBC
Report the most risky thing you have ever done : Please contribute in the relevant forum topic by considering a project like a wedding and identify the risks - contribute to the class forum by considering
Discuss the different powers that the Constitution grants : Discuss the different powers that the Constitution grants exclusively to the states. Explain why it might make sense to reserve each of those powers to states
Write a report on the potential impact of robotics : Write a report on given topic. Topic - The potential impact of robotics on data mining industry

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd