商务英语综合教程下册课件房玉靖主编 ISBN9787810789707Unit 14 Balance of Payments.pptVIP

Unit Fourteen Introduction Balance of payments is a detailed record of all financial and economic transactions between the residents of two countries. It helps to forecast a country’s market potential, especially in the short-run. Therefore, it may influence the decisions of business people. And you may find that it is a double-entry accounting statement. Text 1 Trading nations have developed an accounting concept called balance of payments, which records a country’s trade and capital flow in relation to other countries. All financial and economic transactions between a country’s residents and the rest of the world are measured in money terms. A French father, sending money to his son in New York for educational purposes, will have an effect on the French, as well as on the United States balance of payments The Brazilian importer who buys Italian shoes also affects the Brazilian as well as the Italian balance of payments. transactions that involve receipts by domestic residents from foreign residents. 11 This distinction is most clearly seen when we examine transactions between American and foreign residents and assume that all payments and receipts are made in dollars. Then debit transactions involve dollar payments by Americans to foreigners, and credit transactions involve dollar receipts by Americans from foreigners. Double-Entry Accounting 12 Although it is convenient to speak of “ debit transactions” and “ credit transactions”, each international transaction is an exchange of assets and therefore has both a debit and a credit side. Conceptually, therefore, the balance of payments is a double-entry accounting statement in which total debits and credits are always equal. 1. balance of payments 2. All financial and economic transactions between a country’s residents and the rest of the world are measured in money terms. 3. trade