Balance of payments

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  • Created by: Lottie
  • Created on: 19-05-12 15:06
  • record of all financial dealings
  • split into current account & capital account

CURRENT ACCOUNT

  • trade in goods (visible trade) e.g. manufactured goods, semi-finished etc.
  • trade in services (invisible trade) e.g. financial/ransport services, tourism etc.

CAPITAL ACCOUNT

  • short term money flows: money is moved from country to country in hope of making profit
  • long term money flows: associated with long terms saving and investment e.g. foreign companies mayy choose to invest in UK by building a new factory/ investing in the London Stock Exchange

THE BALANCE OF…

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