ChBalanceofPayment优秀讲义.pptVIP

Ch1 Balance of Payment BOP definition The balance of payments is a statistical statement that systematically summarizes, for a specific time period, the economic transactions of an economy with the rest of the world. Investment position Closely related to the flow-oriented 流量balance of payments framework is the stock-oriented存量 international investment position. Compiled at a specified date such as year end, this investment position is a statistical statement of (i) the value and composition of the stock of an economy’s financial assets, or the economy’s claims on the rest of the world, and (ii) the value and composition of the stock of an economy’s liabilities to the rest of the world. Who use BOP data? Government, policy makers Business managers Investors … BOP data and other macroeconomic variables BOP data influences and is influenced by other key macroeconomic variables such as gross domestic product, employment levels, price levels, exchange rates, and interest rates. Monetary and fiscal policy must take the BOP into account. Typical Balance of Payments Transactions Honda U.S. is the U.S. distributor of automobiles manufactured in Japan by its parent company, Honda of Japan. A U.S. based firm, Fluor Corporation, manages the construction of a major water treatment facility in Bangkok, Thailand. The U.S. subsidiary of a French firm, Saint Gobain, pays profits (dividends) back to its parent firm in Paris. An American tourist purchases a small Lapponia necklace in Finland. The U.S. government finances the purchase of military equipment for its NATO (North Atlantic Treaty Organization) military ally, Norway. A Mexican lawyer purchases a U.S. corporate bond through an investment broker in Cleveland. You should be able to identify what is and is not an international economic transaction. Define international economic transaction BOP is not concerned with payments, but with transactions. A transaction itself is defined as an economic flow that reflects the creat