ppt课件-balanceofpaymentsaccounting-centralweb.pptVIP

Lecture 1 International Finance ECON 243 – Summer I, 2005 Prof. Steve Cunningham The New World Economy The world economy has become increasingly interconnected: Globalization: markets exceed national boundaries; increased mobility of workers, products, and information. Integration: people of different countries choose to function jointly in governance, economic interests, currency, etc. Developments The possibility of such a global economy has been brought about by: Collapse of communism Lower transportation costs Advances in telecommunications (internet, etc.) related technological innovations Economic need These have led to reductions in trade barriers General barriers Integration and free trade zones—Europe, North America, etc. The relaxation of bank and capital market regulations Top 20 Globalized Nations Sectors Economists typically separate the production and sale of goods and services from the exchanges of financial assets. Real Sector: production and sale of goods and services. Financial Sector: transactions in global, foreign, or domestic financial assets. Measurement is difficult because trade may include services (invisibles) and electronic commerce. Balance of Payments A record of international transactions between residents of one country and the rest of the world International transactions include exchanges of goods, services or assets “Residents” means businesses, individuals and government agencies, including citizens temporarily living abroad but excluding local subsidiaries of foreign corporations Double-entry Accounting in the BOP All transactions are either debit or credit transactions Credit transactions result in receipt of payment from foreigners Merchandise exports (valued f.o.b.) Transportation and travel receipts Income received from investments abroad Gifts received from foreign residents Aid received from foreign governments Double-entry Accounting (Cont’d) Debit transactions involve to payments to foreigners Merchandise imports Tra