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I think exports reduces the Balance of payment while foreign capital inflow increases the Balance of payments.
I think exports reduces the Balance of payment while foreign capital inflow increases the Balance of payments.
BOP current a/c records receipts from exports of goods and services sold abroad, payments for imports of goods and services from abroad, net interest income paid abroad, and net transfers abroad (such as foreign aid payments). It equals the sum of exports minus imports, net interest income, and net transfers. BOP capital a/c records foreign investment in Australia minus say Australian investment abroad. For more infor...(Doug, et..al:1953 6th edition: pp.544)
advantages of balance of payment
advantages of balance of payment
Countries buy Foreign Exchange for the following reasons:As a means of investment to earn revenue in anticipation that the purchased currency will appreciate.For payment of import duties and goods.For hedge funds.To boost their foreign reserve
India's balance of payment since 1991
International Balance of Payments
examples of stock variables and flow variables stock: saving,capital,labour force, wage rate, flow: income,investment,balance of payment
The disadvantage is that the country's foreign exchange would be less... The Govt, would be in loss
Trade in goods Trade in service Imports and Transfer are the 4 main element of the balance of payment.
Balance of payment is the difference between the money coming into the country and the money leaving the same country.