《金融英语 Financial English》课件chapter 5 BOP.pptVIP

Chapter 5 The Balance of Payment Introduction to field work and lead-in the text. Revaluation of RMB Why RMB was revalued? ( An argument on the revaluation of RMB) Presentation topic for group 4: The different understanding of finance in China and the western world (assignment 1) (alternative topic: the international institutions) Pre-reading activitiesActivity 1 Brainstorming make a list of questions and use them to interview entrepreneurs about the revaluation of RMB; list some reasons why U.S. asked China to appreciate RMB. Activity 2 the structure and main ideas of the text The text is cited from a foreign textbook. In the text, the author tells us what is BOP, the collection, reporting and presentation of BOP, BOP accounting and account. Supplementary materials Definition by IMF The balance of payments accounts is a record of all international transactions that are undertaken between residents of one country and residents of other countries during some period of time. BOP statement is a statistical statement that systematically summarizes, for a specific period (typically a year or quarter), the economic transactions of an economy with the rest of the world. Compilation of a BOP account follows a double-entry accounting system where every external transaction is presented by two entries, a credit and a debit, with exact equal values but in opposite sign. Rules of bookkeeping regarding goods and services: Goods and services inflows (import) are debit (-), Goods and services outflows (export) are credit (+) Rules of bookkeeping regarding assets (money, stocks, factories, government’s debt, land or others): Net capital inflow increases are credit (+), i.e. capital inflows, eg. Export to foreigners Net capital outflow increases are debit (-), i.e. capital outflows, eg. Domestic residents import foreign assets BOP double-entry accounting convention Standard components of BOP Part one an introduction to BOP Changes in BOP often capture the headlin