Coursework.Info - Inspiration in an Instant

On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:

Components of the Balance of Payments Definition of the Balance of Payments The balance of payments is a record of one country's trade dealings with the rest of the world. Any transaction involving UK and foreign citizens is calculated in sterling (UK pounds). Dealings which result in money entering the country are credit (plus) items while transactions which lead to money leaving the country are debit (minus) items. The balance of payments can be split up into two sections: 1. the current account which deal with international trade in goods and services; 2. transactions in assets and liabilities which deals with overseas flows of money from international investments and loans; Current Account The current account consists of international dealings in goods (visible trade) and services (invisible trade). Invisible trade includes payments for overseas embassies and military bases: interest, profit and dividends from overseas investment; earnings from tourism and transportation. Table 18.1 The UK current account 1985 Debits £m Credits £m Balance £m Visible imports 80...

Get instant access

• Instant, unlimited access to our documents in full
• Swap your work for free access, or pay £4.99
• To see the full version of this document and 150,044 others