abhishreshthaa
Abhijeet S
A. Economic Transactions
An economic transaction is an exchange of value, typically an act in which there is transfer of title to an economic good the rendering of an economic service, or the transfer of title to assets from one economic agent (individual, business, government, etc) to another. An international economic transaction evidently involves such transfer of title or rendering of service from residents of one country to another.
Such a transfer may be a requited transfer (the transferee gives something of an economic value to the transferor in return) or an unrequited transfer (a unilateral gift). The following are the basic types of economic transactions that can be easily identified:
1. Purchase or sale of goods or services with a financial quid pro quo – cash or a promise to pay. [One real and one financial transfer].
2. Purchase or sale of goods or services in return for goods or services or a barter transaction. [Two real transfers].
3. An exchange of financial items e.g. – purchase of foreign securities with payment in cash or by a cheque drawn on a foreign deposit. [Two financial transfers].
4. A unilateral gift in kind [One real transfer].
5. A unilateral financial gift. [One financial transfer].
An economic transaction is an exchange of value, typically an act in which there is transfer of title to an economic good the rendering of an economic service, or the transfer of title to assets from one economic agent (individual, business, government, etc) to another. An international economic transaction evidently involves such transfer of title or rendering of service from residents of one country to another.
Such a transfer may be a requited transfer (the transferee gives something of an economic value to the transferor in return) or an unrequited transfer (a unilateral gift). The following are the basic types of economic transactions that can be easily identified:
1. Purchase or sale of goods or services with a financial quid pro quo – cash or a promise to pay. [One real and one financial transfer].
2. Purchase or sale of goods or services in return for goods or services or a barter transaction. [Two real transfers].
3. An exchange of financial items e.g. – purchase of foreign securities with payment in cash or by a cheque drawn on a foreign deposit. [Two financial transfers].
4. A unilateral gift in kind [One real transfer].
5. A unilateral financial gift. [One financial transfer].