About This Chapter
Balance of Payments - Chapter Summary
In this advanced international business chapter, you can examine balance of payments. These bite-sized and engaging lessons outline balance of payment mechanisms and adjustments, as well as concepts related to financial accounts and trade balances. You'll also take a look at an international case study pertaining to these topics. Lesson quizzes and transcripts are available to help reinforce the information you learn. After studying these lessons, you should be able to:
- Assess the balance of payments with financial accounts and measure foreign trade
- Explain how businesses achieve trade balances
- Outline the system of national accounts and balance of payments
- Evaluate mechanisms for adjusting the balance of payments
- Analyze a business case study regarding a balance of payments in India
1. Balance of Payments with Financial Accounts: Measuring Foreign Trade
Learn about the balance of payments and the two key components that make it up. Discover what the financial/capital account is and how it relates to foreign trade and surpluses and deficits.
2. Achieving Trade Balance: Trade Deficit and Surplus Examples
Find out what trade balance, trade deficit, and trade surplus are. Learn about some recent examples that help clarify trade deficit and surplus. Explore what countries have a surplus and what countries have a deficit.
3. System of National Accounts & Balance of Payments
In this lesson, learn about the system of national accounts and the books dealing with international transactions: the balance of payments. Examine the common principles of both systems, and explore the main accounts in the balance of payments.
4. Mechanisms for Adjusting Balance of Payments
In this lesson, examine the different mechanisms that countries can use to correct imbalances in the balance of payments, including the adjustment of exchange rates, the adjustment of internal prices, and the rules-based adjustment.
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Other chapters within the Business 320: Advanced International Business course
- Globalization & International Business
- Organizational Structure & Communication
- Understanding Global Economic Environments
- World Trade Organization
- Entering the Global Marketplace
- Regional Integration
- International Trade Theory & Policy
- Global Money System
- Exchange Rate Determination & Forecasting
- Factors of Economic Growth & Development
- Foreign Direct Investments
- International Business Strategy
- Crisis Management & International Business
- International Business Ethics