What are methods used in controlling the balance of payments?

Answer 1

There are various ways to controlling the balance of payments in most cases the action is to decrease payment balances owed or increase them to garner more income.

Devaluation of capital is key such as depreciation on capital gains tax but unfavorable devaluation also doesn't effect interest on some capital goods spending such as a new car will depreciate but they payments of interest stay constant. A key method to reduce this in business not in consumer spending for a vehicle is leasing or renting tools or vehicles to reduce capital tax payments and or tool taxes as asset values owned by a business.

Another area is payment schedule management were tight controls of measuring where revenues earned match prior to payments owed this eliminates deficiencies in payments that may imply fees or penalties.

The most tricky is foreign investments as implied overseas status operations if the commodities of a business is held in foreign venues that have lower tax base may reduce payments but import may be greater - some other options is incorporating in regions various states or nations per headquarters to avoid increased payments. No other avenue displays this more than taxes key example at a local level is prepared food and/or alcohol sales where in one county/municipal no tax levy is implied but in the next may incur increased payment amounts due to imposed taxes.

Import and export this too can be managed via volume or other economic allocations one key example is a nation may offer no export duties for corporations that invest more labor employment into its market economy.

Tourism is also implied as in tax discounts for increasing revenues for tourism such as corvettes's 1st time buying plan where a consumer can purchase a vehicle direct form the manufacturer in return for a package deal of additional spending on staying two weeks in state's manufacturing facility. Not limited to tourism but may include agriculture and other industries through economic development conventions and etc.

***The most important payment balance control not mentioned above is purchase agreements negotiated (amount, time and scheduling agreements as in any debt incur there are tables for intrest, time of return payment and applications towards purchase discounts or etc.) Another factor is status of ownership in purchase agreements. One prime example is the purchase and shipping of commodities. where in the implied purchase agreement point of ownership can delay on time schedules of capital gains taxes, time frame to pay if early can garner a discount upon the purchase, agreements to pay in a scheduled format various costs of repayment interest amounts are also negotiated in business as per level of payment amounts all this can reduces payments all around by various avenues as who holds title of ownership for tax purpose, the reduction of cost per trade discount agreements and the time schedule to reduce payments in interest as well as interest tax discounts. Other avenues also involve insurance too on these commodities as negotiating lower payment restrictions such as home ownership - protection on the home from loss while under the liens of a bank.

Answer 2

Some methods used in controlling the balance of payments include imposing import restrictions or tariffs to reduce imports and promote domestic production, implementing export promotion policies such as subsidies and tax incentives to increase exports, devaluing the currency to make exports cheaper and imports more expensive, and implementing capital controls to regulate the flow of funds in and out of the country. Additionally, countries may seek financial assistance from international organizations or engage in bilateral trade agreements to improve their balance of payments.