--%>

Positive Balance of Payments

I have a problem with the satement “Things will look excellent for the US if we could just get to where we are consistently executing a positive Balance of Payments.” Can someone in short comment on this statement?

 

E

Expert

Verified

Balance of payments is a measure of net flow of funds from a country; it consists of both long term and short term flow of funds. A positive BOP reflects that the country is gaining from long term and short term transactions in the world and hence, accumulating wealth. Therefore, if the US has a positive BOP then it means that it is accumulating wealth thereby benefitting the economy in the short run as well as long run.

   Related Questions in International Economics

  • Q : Problem related to direct foreign

    China is a huge manufacturer of technology of telephone devices. It has lately become a member of W.T.O. that means it can sell its products in other member countries such as India. Assume that it does export a big number of telephone instruments to India:

  • Q : Tourism services to tourist-Balance of

    In which account of balance of payment tourism services to tourist are involved? Answer: Tourism services to tourist are comprised in current account of Balance of

  • Q : Define induced investment Induced

    Induced investment: It is a type of investment that is of profit motive in nature.

  • Q : Who won the Nobel Prize for Economics

    Who won the Nobel Prize for Economics in 1997?

  • Q : Problems suppose that an investor has

    suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%

  • Q : Homework help for manufacturer &

    Question 1 Household Tools Co. is a manufacturer of microwave ovens. The manufacturer wants to increase the shelf life of their products. Past records indicate that the average shelf life of their microwave ovens is 240 days. After a new line of microwave ovens has been d

  • Q : Define fixed exchange rate Fixed

    Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.

  • Q : State the two sources of demand of

    State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.

  • Q : System characterization of US economy

    The U.S. economy is an instance of a system characterized by: (1) Mixture of different aspects of various economic systems. (2) Strictly decentralized the decision making process. (3) Centralized ownership of resources. (4) Political decisions regarding all allocative