Balance Of Payment

Definition

National account of a country

Measure all financial transactions and flow of currencies into and out of the economy

Within a particular period, usually a year

Structure & Calculation of BOP

The Current Account

Goods

Export

Import

Service

Net Freight & Insurance

Transportation

Travel

Government Transaction

Other Services

Primary

Compensation of Employees

Investment Income

Direct Income

Portfolio Income

Other Income

Secondary

Current Transfer

The Capital & Financial Account

Long Term

Short Term

Direct Investment

Portfolio Investment

Other Investment

The Errors & Omission

Errors & Omission

Reserve Assets

Equilibrium & Disequilibrium

Surplus

Positive

Deficit

Negative

Subtopic

Economic Effect

Lower Economic Growth

Local Producer Incur Loss

Deplete Reserves

Increase Indebtness