idefinition of balance of payments培训讲义.pptVIP

Unit 2 Balance of Payments I. Definition of Balance of Payments Balance of Payments (BOP) refers to a system of government accounts that records and catalogs a country’s exports and imports as well as the flow of capital and gifts between the residents of the country and residents of other countries during a specific time interval. II. Two Principles of BOP Natural Person A. Residents Legal Person (Enterprises Public Agencies) e.g. For an MNC, such as General Motor (GM) for China’s BOP: Parent in America Subsidiary in China so, foreign resident regarded as China’s residents Residents of US Note: “Hence, sales by a parent firm to a foreign subsidiary result in balance of payments entries, even though the transaction takes place within a single corporation.” B. Double-Entry System(复式记帐法） Each transaction gives rise to both a credit entry (贷记) and debit entry (借记）of BOP in different countries. Credit Debit Inflow of capital + - Outflow of capital i) All transactions involving payments from foreigners to a country are entered in BOP “receipts” column with a plus signal (+) to reflect that they are credits, which results in inflow of funds to the country. ii) All payments to foreigners are entered in the “payments” column with a minus signal (-) to reflect that they are debits because they result in outflows of funds to other countries. III. Important Sections of BOP A. Current Account (经常项目帐户） i) Merchandise-Imports Exports tangible goods (有形商品） ii) Services （服务）- intangible goods（无形商品） transportation 运输 tourism 旅游 insurance 保险 communication 通讯 e.g. cost CIF insurance Based on the requirements of BOP, these t