Description
PPT ON BALANCE OF PAYMENT
*
Group 11
* Introduction * Definition of BoP * Importance of
BoP
* Composition of BoP
*
*The balance of payments (BOP) records
financial transactions made between consumers, businesses and the government in one country with others
*
* A record of all transactions made between one
particular country and all other countries during a specified period of time.
* The Current Account * The Capital and financial Account * Official Settlements Account * Errors and Omissions
*
* Income Growth * External orientation * Relationship between trade in goods and services
and direct investment flows * Links between the exchange rate and the current and financial accounts * International banking transactions * Assets securitization and financial market developments * External debt situation
*
* Trade – buying and selling of goods and services
* Exports – a credit entry * Imports – a debit entry
* Trade balance – the sum of Exports and Imports * Factor income – repayments and dividends from loans and investments
* Factor earnings – a credit entry * Factor payments – a debit entry
* Factor income balance – the sum of earnings and
payments.
*
* Capital Account = Foreign direct investment +
Portfolio investment + other investment + Reserve account
* Current Account=trade
Income-Transfers
balance + Service +
*
* BALANCE OF PAYMENTS SURPLUS * BALANCE OF PAYMENTS DEFICIT * CAPITAL ACCOUNT DEFICIT * BALANCE OF TRADE SURPLUS
* Running a deficit on the current account means
that the country is not paying its way in the global economy. There is a net outflow of demand and income from the circular flow of income and spending.
*
* *
High income elasticity of demand for imports – when consumer spending is strong, the volume of imports grows quickly Long-term decline in the capacity of manufacturing industry because of deindustrialization.
*
* High income elasticity of demand for imports * Long-term decline in the capacity of manufacturing
industry because of de-industrialization.
* The Sri Lanka is a net importer of foodstuffs and
beverages and has also seen a sharp rise in spending on imports of oil and gas. commodity prices and exchange rates. The Sri Lanka imports a large volume of raw materials, component parts and pieces of capital equipment.
* The trade balance is vulnerable to shifts in world
doc_877259572.pptx
PPT ON BALANCE OF PAYMENT
*
Group 11
* Introduction * Definition of BoP * Importance of
BoP
* Composition of BoP
*
*The balance of payments (BOP) records
financial transactions made between consumers, businesses and the government in one country with others
*
* A record of all transactions made between one
particular country and all other countries during a specified period of time.
* The Current Account * The Capital and financial Account * Official Settlements Account * Errors and Omissions
*
* Income Growth * External orientation * Relationship between trade in goods and services
and direct investment flows * Links between the exchange rate and the current and financial accounts * International banking transactions * Assets securitization and financial market developments * External debt situation
*
* Trade – buying and selling of goods and services
* Exports – a credit entry * Imports – a debit entry
* Trade balance – the sum of Exports and Imports * Factor income – repayments and dividends from loans and investments
* Factor earnings – a credit entry * Factor payments – a debit entry
* Factor income balance – the sum of earnings and
payments.
*
* Capital Account = Foreign direct investment +
Portfolio investment + other investment + Reserve account
* Current Account=trade
Income-Transfers
balance + Service +
*
* BALANCE OF PAYMENTS SURPLUS * BALANCE OF PAYMENTS DEFICIT * CAPITAL ACCOUNT DEFICIT * BALANCE OF TRADE SURPLUS
* Running a deficit on the current account means
that the country is not paying its way in the global economy. There is a net outflow of demand and income from the circular flow of income and spending.
*
* *
High income elasticity of demand for imports – when consumer spending is strong, the volume of imports grows quickly Long-term decline in the capacity of manufacturing industry because of deindustrialization.
*
* High income elasticity of demand for imports * Long-term decline in the capacity of manufacturing
industry because of de-industrialization.
* The Sri Lanka is a net importer of foodstuffs and
beverages and has also seen a sharp rise in spending on imports of oil and gas. commodity prices and exchange rates. The Sri Lanka imports a large volume of raw materials, component parts and pieces of capital equipment.
* The trade balance is vulnerable to shifts in world
doc_877259572.pptx