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Q: Why would it be useful to examine a country's balance of payments deficits or surplus?
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Write all the Differences between balance of trade and balance of payment in tabular form?

In order to examine a country's position in international trade, it is useful to consult two of the most frequently used statistics, the balance of trade and the balance of payments. When you hear on the news about the U.S. "trade balance," what you are usually hearing about is the merchandise trade balance, which is the difference between a nation's exports and imports of merchandise. A "favorable" merchandise balance of trade, or trade surplus, occurs when a country's exports exceed its imports. A "negative" balance of trade, or trade deficit, occurs when a country's imports exceed its exports. From the mid-1970s, throughout the 1980s and into the 1990s, the United States has run persistent trade deficits. Economists disagree as to the effects this has had on the economy, but it is certain that these deficits allowed foreigners to accumulate U.S. dollars earned in payment for products that Americans imported The balance of trade, however, is not the whole picture; it includes only purchases and sales of merchandise. The complete summary of all economic transactions between a country and the rest of the world--involving transfers of merchandise, services, financial assets and tourism--is called the balance of payments. Simply, any transaction that results in money flowing into the country is a balance of payments credit, and anything that draws money out of the country is a balance of payments debit. Balance of payments deficits, where the amount of money leaving the country is greater than the amount flowing in, need to be financed; extra money has to come from somewhere. Usually, payments deficits are financed by borrowing money from overseas. The balance of payments for a country is separated into two main accounts: the current account and the capital account. The current account records sales and purchases of goods, services and interest payments. The entire merchandise trade balance is contained in the current account. The capital account deals with investment items, like whole companies, stocks, bonds, bank accounts, real estate and factories. Thus, if you bought a parachute from a factory in Germany, your purchase would be recorded in the current account. But if you bought the entire parachute factory, your purchase would be in the capital account. The balance of payments is influenced by many factors, including the financial and economic climate of other countries. For example, if other countries want the services of U.S. doctors, bankers, lawyers, accountants, engineers, entertainers and other service-providers, that demand will play a significant role in the U.S. balance of payments. Large amounts of money flow between nations in payment for such services, even if no merchandise is exchanged. In 1991, service exports accounted for over one-quarter of total U.S. export


Why would it be useful to examine a country's balance of payment data?

why would it be useful to examine a country balance of payment data


Examine the past present and future of entrepreneurship in Nigeria?

Examine the past present and future of entrepreneurship in nigeria?


What does economics examine?

scarcity


Critically examine recardian theory of trade?

ortu

Related questions

Write all the Differences between balance of trade and balance of payment in tabular form?

In order to examine a country's position in international trade, it is useful to consult two of the most frequently used statistics, the balance of trade and the balance of payments. When you hear on the news about the U.S. "trade balance," what you are usually hearing about is the merchandise trade balance, which is the difference between a nation's exports and imports of merchandise. A "favorable" merchandise balance of trade, or trade surplus, occurs when a country's exports exceed its imports. A "negative" balance of trade, or trade deficit, occurs when a country's imports exceed its exports. From the mid-1970s, throughout the 1980s and into the 1990s, the United States has run persistent trade deficits. Economists disagree as to the effects this has had on the economy, but it is certain that these deficits allowed foreigners to accumulate U.S. dollars earned in payment for products that Americans imported The balance of trade, however, is not the whole picture; it includes only purchases and sales of merchandise. The complete summary of all economic transactions between a country and the rest of the world--involving transfers of merchandise, services, financial assets and tourism--is called the balance of payments. Simply, any transaction that results in money flowing into the country is a balance of payments credit, and anything that draws money out of the country is a balance of payments debit. Balance of payments deficits, where the amount of money leaving the country is greater than the amount flowing in, need to be financed; extra money has to come from somewhere. Usually, payments deficits are financed by borrowing money from overseas. The balance of payments for a country is separated into two main accounts: the current account and the capital account. The current account records sales and purchases of goods, services and interest payments. The entire merchandise trade balance is contained in the current account. The capital account deals with investment items, like whole companies, stocks, bonds, bank accounts, real estate and factories. Thus, if you bought a parachute from a factory in Germany, your purchase would be recorded in the current account. But if you bought the entire parachute factory, your purchase would be in the capital account. The balance of payments is influenced by many factors, including the financial and economic climate of other countries. For example, if other countries want the services of U.S. doctors, bankers, lawyers, accountants, engineers, entertainers and other service-providers, that demand will play a significant role in the U.S. balance of payments. Large amounts of money flow between nations in payment for such services, even if no merchandise is exchanged. In 1991, service exports accounted for over one-quarter of total U.S. export


Why would it be useful to examine a country's balance of payment data?

why would it be useful to examine a country balance of payment data


What is a synonym for the word compare?

analyze, examine, study, observe, match, inspect, contemplate, balance


Does a court have access to your bank account information?

If a court order was published to examine your account balance , then yes they can get you bank info


According to the collaborative approach, after parties examine both sides of an argument objectively, what should they do next?

Balance ideas to promote a positive dialogue and resolve conflict. apex.


Is examine a verb?

Yes, "examine" is a verb. It is an action word that means to inspect, investigate, or analyze something closely.


What is a sentence for the word examine?

The forensics team will examine the crime scene.The doctor needs to examine you.He likes to examine nature.


What is a sentence with the word examine?

We will carefully examine the evidence.He used a magnifying glass to examine the small writing.


What is the greek word for examine?

The Greek word for examine is skopeo which means to look at inspect or examine


What is to examine?

Question: what is to examine? Answer: To examine is to give exercises to the students in order to determine their understanding and proficiency of the subject.


What is the past of examine?

Examined is the past participle of examine.


What is the opposite of examine?

The opposite of examine is ignore.