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Ch 2: The Balance of Payments in International Finance

About This Chapter

This chapter helps you quickly study the balance of payments in international finance through a series of short lessons and quizzes. You can use these resources to study for an upcoming finance exam, catch up in class, bring up your grades or simply improve your international finance knowledge.

The Balance of Payments in International Finance - Chapter Summary

Learn about the balance of payments in international finance with this self-paced chapter. This series of expertly taught finance lessons shows you essential information about the System of National Accounts, foreign trade measurements, trade balance, strategic trade policies and much more. If you have any questions about these concepts, you'll be able to submit them to our instructors online. Use any computer or mobile device to study, and be sure to take the accompanying self-assessments to make sure you fully understand the information. When you're finished with the chapter, you should be able to:

  • Explain how the System of National Accounts works
  • Describe the measurement of foreign trade
  • Recognize the components of financial, capital and current accounts
  • Discuss how trade balances are achieved
  • Evaluate the balance of payments and identify mechanisms that are used to adjust them
  • Interpret strategic trade policies and international trade policy
  • Summarize the history of modern U.S. trade relations

5 Lessons in Chapter 2: The Balance of Payments in International Finance
Balance of Payments with Financial Accounts: Measuring Foreign Trade

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.

Achieving Trade Balance: Trade Deficit and Surplus Examples

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.

Balance of Payments: Current Account & Measuring Foreign Trade

3. Balance of Payments: Current Account & Measuring Foreign Trade

Find out what the current account is and the four main foreign trade components that it is comprised of. Similar to your bank account, learn how the current account is measured and what a deficit and surplus mean when talking about this economic indicator.

What Is a Current Account? - Definition & Examples

4. What Is a Current Account? - Definition & Examples

Every country that trades with another country, has an account that they use to keep track of trade in goods, services, money received from investments, and money donated. In this lesson, we will learn more about current accounts and look at some examples.

International Trade Policy & Strategic Trade Policies

5. International Trade Policy & Strategic Trade Policies

Governments sometimes intervene in international trade. In this lesson, we'll examine the arguments against strategic trade policy and discuss the policy instruments used by governments to influence international trade flows.

Final Exam
Finance 302: International Finance
This course currently has no final exam ready
Chapter Exam

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