Explain the effect of foreigners’ portfolio investments, Financial Management

Assignment Help:

As the early 1980s, foreign portfolio investors have purchased an important portion of U.S. treasury bond issues. Discuss the short-term and long-term influences of foreigners’ portfolio investment on the U.S. balance of payments.

As foreigners purchase U.S. Treasury bonds, U.S. BOP will enhance in the short run. Although in the long run, U.S. BOP may deteriorate since the U.S. should pay interests and principals to foreigners. If foreign funds are employed productively and contributes to the competitiveness of U.S. industries, though, U.S. BOP may enhance in the long run.


Related Discussions:- Explain the effect of foreigners’ portfolio investments

''a'' priori probability, 'A' Priori Probability This is a probability ...

'A' Priori Probability This is a probability computed by rationally examining existing information. A priori probability can most simply be explained as making a conclusion on

What circumstances would market to book value ratios, Under what circumstan...

Under what circumstances would market to book value ratios be misleading?  Explain. The Market to Book ratio is helpful, however it is only a irregular approximation of how li

Credit enhancement mechanisms, Credit enhancement is a key part...

Credit enhancement is a key part of the securitization transaction in structured finance, and is important for credit rating agencies. Credit enhancem

Dividend policy, DIVIDEND POLICY Dividends provide the portion of a fi...

DIVIDEND POLICY Dividends provide the portion of a firm's net earnings which are paid out to the shareholders. the objective of financial management of maximizing the share

Financial management assignment, You have just had your 30 th birthday. Yo...

You have just had your 30 th birthday. You have two children. One will go to college 12 years from now and require four yearly payments for college expenses of RM11,000, RM12,000

Csae lets.., how would you judge the potential

how would you judge the potential

Specific cost of capital, Specific Cost of Capital When the Cost of ev...

Specific Cost of Capital When the Cost of every source of capital is individually calculated, it is known as Specific Cost of Capital example Cost of equity, cost of debt, etc

Federal funds rate, Federal Funds Rate The interest rate that Amer...

Federal Funds Rate The interest rate that American banks that have funds in excess of the needs dictated by the Federal Reserve use to make overnight loans to banks whose

Write Your Message!

Captcha
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