The Balance Of Payment ( Bop ) Essay - 1621 Words

According to Federal Reserve Bank of New York, â€Å"The Balance of Payment† (BOP) is a statement used by a country to summarize an economy’s transactions with the rest of the world by both private and public sectors for a specified time period, usually every quarter or year. It is known as â€Å"Balance of International Payment†, it involves all transactions between a country’s residents and its non-residents involving goods, services and income, financial claims on and liabilities to the rest of the word. If a country has received money, this is known as a â€Å"credit†, and if a country has paid or given money, the transaction is counted as a â€Å"debit†. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance; however, in the reality, this is rarely the case. The BOP is divided into 3 main categories: the current account, the capital account, and the financial account: 1. The Current Account The current account refers to the export and import of goods and services into a country. Within the current account are credits and debits on the trade of merchandise, including goods such as raw materials and manufactured goods that are bought, sold or given away in the form of aid. Services refer to receipts from tourism, transportation, engineering, business service fees such as lawyers or management consulting, and royalties from patents and copyrights, and income-generating assets such as stocks. Last but not least, it includes the unilateralShow MoreRelatedBalance of Payment1714 Words   |  7 PagesBALANCE OF PAYMENT (BOP) Introduction: Balance of payments (BOP) is a record of economic transitions between the residents of one country and the rest of the world during one year. The balance of payment like all balance sheets must balance. The items, which lead to, an inflow of foreign earnings are placed on the credit side of the balance sheet, whereas the items, which give, rise to an outflow of foreign currency are placed on the debit side. Definition: â€Å"Balance of payment is a systematicRead MoreMgec61 Note - Chapter 13 Essay1022 Words   |  5 Pageschapter 19 ï‚ · Arguments for and against common currency – chapter 21 MGEC61 – Chapter 13  © Iris Au 1 Chapter 13: National Income Accounting and the Balance of Payments The National Income Identity for an Open Economy ï‚ · The national income identity for an open economy is: Output (Y) = C + I + G + (EX – IM) ï‚ · A country’s current account (CA) balance shows the difference between exports of goods and services and imports of goods and services (including net income on foreign investments), plus netRead MoreAnalyzing The Trends And Emerging Challenges Of India s Balance Of Payments Essay1406 Words   |  6 PagesIntroduction Balance of Payments (BoP), being a record of the monetary transactions over a period with the rest of the world, reflects all payments and liabilities to foreigners and all payments and obligations received from foreigners. In this sense, the balance of payments is one of the major indicators of a country s status in international trade. BoP accounting serves to highlight a country s competitive strengths and weaknesses and helps in achieving balanced economic-growth. It can significantlyRead MoreImproving a Deficit in the Balance of Payments Essay984 Words   |  4 PagesDiscuss the alternative policies a government may use to improve a deficit in the Balance of Payments (BOP) There are many ways a government can improve a deficit of the BOP. First we must define the key terms. A deficit is the falling short of revenue as compared with expenditure; the amount of this deficiency; the amount required to make assets balance liabilities. The Balance of payments is a record or overall statement of a country’s economic transactions with the rest of the worldRead MoreBALANCE OF PAYMENTS Essay3498 Words   |  14 Pagesï » ¿Balance of Payments MEANING : Balance of payment can be defined as systematic record of all economic transactions between the residence of one country and the residence of another country during a given period of time.Economic transactions can broadly be categorized in to four heads which are: 1. VISIBLE ITEMS : visible items include all those tangible goods which can be imported and exported. These are visible as they are made up of some matter or material. this is known as merchandise alsoRead Morerrent situation of Balance of Payments in Malaysia (until 2013) The Balance of Payments is defined900 Words   |  4 Pagessituation of Balance of Payments in Malaysia (until 2013) The Balance of Payments is defined a country transactions with other countries and the difference of total value between payments inflows and outflows of the money over a period. In other hand, there is a statement to summarize an economic transactions that be recorded by balance of payments related to consumers, businesses and the government in each country. Whether a company is successful in exporting to other countries or not that the BOP willRead MoreEconomic Data1321 Words   |  6 Pagesà ¸ £Ã  ¸ §Ã  ¸ ¡Ã  ¸â€"à ¸ ¶Ã  ¸â€¡Ã  ¸ Ã  ¸ ²Ã  ¸ £Ã  ¸â€"à ¸ ³ case study à ¸â€Ã  ¹â€°Ã  ¸ §Ã  ¸ ¢ à ¹â€šÃ  ¸â€Ã  ¸ ¢Ã  ¸ ¡Ã  ¸ µÃ  ¸ «Ã  ¸ ±Ã  ¸ §Ã  ¸â€šÃ  ¹â€°Ã  ¸ ­Ã  ¸ «Ã  ¸ ¥Ã  ¸ ±Ã  ¸ Ã  ¹â€  à ¸â€Ã  ¸ ±Ã  ¸â€¡Ã  ¸â„¢Ã  ¸ µÃ  ¹â€° 1. Balance of Payment (à ¸â€Ã  ¸ ¸Ã  ¸ ¥Ã  ¸ Ã  ¸ ²Ã  ¸ £Ã  ¸Å Ã  ¸ ³Ã  ¸ £Ã  ¸ °Ã  ¹â‚¬Ã  ¸â€¡Ã  ¸ ´Ã  ¸â„¢Ã  ¸ £Ã  ¸ °Ã  ¸ «Ã  ¸ §Ã  ¹Ë†Ã  ¸ ²Ã  ¸â€¡Ã  ¸â€ºÃ  ¸ £Ã  ¸ °Ã  ¹â‚¬Ã  ¸â€"à ¸ ¨) ; BOP 2. Exchange Rate Systems (à ¸ £Ã  ¸ °Ã  ¸Å¡Ã  ¸Å¡Ã  ¸ ­Ã  ¸ ±Ã  ¸â€¢Ã  ¸ £Ã  ¸ ²Ã  ¹ Ã  ¸ ¥Ã  ¸ Ã  ¹â‚¬Ã  ¸â€ºÃ  ¸ ¥Ã  ¸ µÃ  ¹Ë†Ã  ¸ ¢Ã  ¸â„¢Ã  ¹â‚¬Ã  ¸â€¡Ã  ¸ ´Ã  ¸â„¢Ã  ¸â€¢Ã  ¸ £Ã  ¸ ²Ã  ¸ £Ã  ¸ °Ã  ¸ «Ã  ¸ §Ã  ¹Ë†Ã  ¸ ²Ã  ¸â€¡Ã  ¸â€ºÃ  ¸ £Ã  ¸ °Ã  ¹â‚¬Ã  ¸â€"à ¸ ¨) à ¸ ¡Ã  ¸ µÃ  ¸ «Ã  ¸ ¥Ã  ¸ ²Ã  ¸ ¢Ã  ¸ £Ã  ¸ °Ã  ¸Å¡Ã  ¸Å¡Ã  ¸ ¡Ã  ¸ ²Ã  ¸  à ¹ Ã  ¸â€¢Ã  ¹Ë†Ã  ¸ ¥Ã  ¸ °Ã  ¸ £Ã  ¸ °Ã  ¸Å¡Ã  ¸Å¡Ã  ¸ Ã  ¹â€¡Ã  ¸ ¡Ã  ¸ µÃ  ¸â€šÃ  ¹â€°Ã  ¸ ­Ã  ¸â€Ã  ¸ µÃ  ¹ Ã  ¸ ¥Ã  ¸ °Ã  ¸â€šÃ  ¹â€°Ã  ¸ ­Ã  ¹â‚¬Ã  ¸ ªÃ  ¸ µÃ  ¸ ¢Ã  ¹ Ã  ¸â€¢Ã  ¸ Ã  ¸â€¢Ã  ¹Ë†Ã  ¸ ²Ã  ¸â€¡Ã  ¸ Ã  ¸ ±Ã  ¸â„¢Ã  ¸ ­Ã  ¸ ­Ã  ¸ Ã  ¹â€žÃ  ¸â€º 3. à ¹ Ã  ¸â„¢Ã  ¸ §Ã  ¸â€"à ¸ ²Ã  ¸â€¡Ã  ¸ Ã  ¸ ²Ã  ¸ £Ã  ¸ £Ã  ¸ ±Ã  ¸ Ã  ¸ ©Ã  ¸ ²Ã  ¹â‚¬Ã  ¸ ªÃ  ¸â€"à ¸ µÃ  ¸ ¢Ã  ¸ £Ã  ¸  Ã  ¸ ²Ã  ¸Å¾Ã  ¸â€šÃ  ¸ ­Ã  ¸â€¡ BOP à ¹Æ'à ¸â„¢Ã  ¸ Ã  ¸ ²Ã  ¸ £Ã  ¹â‚¬Ã  ¸ £Ã  ¸ µÃ  ¸ ¢Ã  ¸â„¢Ã  ¸â€žÃ  ¸ ¸Ã  ¸â€œÃ  ¸â€¢Ã  ¹â€°Ã  ¸ ­Ã  ¸â€¡Ã  ¸â„¢Ã  ¸ ³Ã  ¹â‚¬Ã  ¸ ­Ã  ¸ ² Handout à ¸â€"à ¸ µÃ  ¹Ë†Ã  ¹ Ã  ¸Ë†Ã  ¸ Ã  ¸â€žÃ  ¸ £Ã  ¸ ±Ã  ¹â€°Ã  ¸â€¡Ã  ¸â€"à ¸ µÃ  ¹Ë†Ã  ¹ Ã  ¸ ¥Ã  ¹â€°Ã  ¸ §Ã  ¸ ¡Ã  ¸ ²Ã  ¹Æ'à ¸Å Ã  ¹â€°Ã  ¸â€Ã  ¹â€°Ã  ¸ §Ã  ¸ ¢...à ¸ ­Ã  ¸ ¹Ã  ¸ ¢Ã  ¸ ¢Ã  ¹Å'...à ¹â€žÃ  ¸ ¡Ã  ¹Ë†Ã  ¸ ¡Ã  ¸ µÃ  ¸ ­Ã  ¸ °Ã  ¹â€žÃ  ¸ £Ã  ¸ ¡Ã  ¸ ²Ã  ¹â‚¬Ã  ¸ ¥Ã  ¸ ¢Ã  ¹â‚¬Ã  ¸ £Ã  ¸ ² à ¹â‚¬Ã  ¸ £Ã  ¸ ²Ã  ¹â‚¬Ã  ¸ £Ã  ¸ ´Ã  ¹Ë†Ã  ¸ ¡Ã  ¸â€"à ¸ µÃ  ¹Ë†Ã  ¸ «Ã  ¸ ±Ã  ¸ §Ã  ¸â€šÃ  ¹â€°Ã  ¸ ­Ã  ¹ Ã  ¸ £Ã  ¸ Ã  ¸ Ã  ¹Ë†Ã  ¸ ­Ã  ¸â„¢Ã  ¸â„¢Ã  ¸ °Ã  ¸â€žÃ  ¸ £Ã  ¸ ±Ã  ¸Å¡ Balance of Payment; BOP à ¹â‚¬Ã  ¸â€ºÃ  ¹â€¡Ã  ¸â„¢Ã  ¸â€Ã  ¸ ¸Ã  ¸ ¥Ã  ¸Å¡Ã  ¸ ±Ã  ¸ Ã  ¸Å Ã  ¸ µÃ  ¸â€"à ¸ µÃ  ¹Ë†Ã  ¸Å Ã  ¸ µÃ  ¹â€°Ã  ¹Æ'à ¸ «Ã  ¹â€°Ã  ¹â‚¬Ã  ¸ «Ã  ¹â€¡Ã  ¸â„¢Ã  ¸â€"à ¸ ¶Ã  ¸â€¡Ã  ¸ Ã  ¸ ²Ã  ¸â„¢Ã  ¸ °Ã  ¸â€"à ¸ ²Ã  ¸â€¡Ã  ¸ Ã  ¸ ²Ã  ¸ £Ã  ¹â‚¬Ã  ¸â€¡Ã  ¸ ´Ã  ¸â„¢Ã  ¸â€šÃ  ¸ ­Ã  ¸â€¡Ã  ¸â€ºÃ  ¸ £Ã  ¸ °Ã  ¹â‚¬Ã  ¸â€"à ¸ ¨Ã  ¸â„¢Ã  ¸ ±Ã  ¹â€°Ã  ¸â„¢Ã  ¹â€  ..Read MoreEssay on Macroeconomics Stability1407 Words   |  6 Pagessustainable economic growth, low and stable inflation, low and stable unemployment and a sustainable balance of payments (BOP) position. These are the four goals that are important for any country to maintain macroeconomic stability. These are measured by key macroeconomic indicators such as GDP growth rate, inflation rate, unemployment rate and balance of payments. It is a â€Å"mix of external and internal balance, which in turn implied, in the second case, full employment and stable economic growth, accompaniedRead MoreFederal R eserve Bank Of New York Essay1620 Words   |  7 PagesI. Introduction According to Federal Reserve Bank of New York, â€Å"The Balance of Payment† (BOP) is a statement used by a country to summarize an economy’s transactions with the rest of the world by both private and public sectors for a specified time period, usually every quarter or year. It is known as â€Å"Balance of International Payment†, it involves all transactions between a country’s residents and its non-residents involving goods, services and income, financial claims on and liabilities to theRead MoreThe Real Challenge Of The Bop Market1270 Words   |  6 Pagesreal challenge of the BOP markets is, first and foremost, to fully understand the needs of poor consumers and translate them into high-quality products quality. Companies do not often understand how these consumers live, what they value and what their aspirations are. If a product fails to generate enough demand to be profitable, it may be because the company is not listening to the customers. If the company decides to look further into the possibility of marketing to the BOP segment, it will be mandatory