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?
Expert
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.
. In 2007 and 2008 Boeing ran into several publicized issues with regard to its management of a globally dispersed supply chain. What are the causes of these problems? What can a company such as Boeing do to make sure such problems do not occur in the future?
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
Determine the factors accountable for inflow of foreign currency? Answer: a) Foreigners buying home country services and goods via exports. b) Foreigners investment in home country via joint ventures and via
Induced investment: It is a type of investment that is of profit motive in nature.
5. What are the factors responsible for the recent surge in international portfolio investment?
distinguish between autonomous transactions and accommodating transactions under balance of payments
Define foreign exchange: It is the currency other than domestic currency.
Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.
Explain all the approaches of Paul Samuelson.
State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?
18,76,764
1953528 Asked
3,689
Active Tutors
1425282
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!