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Balance of Payments

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The balance of payments is the total of all money flowing into a country minus all the money flowing out over a period. It is made up of the current account and the financial or [[Capital|capital]] account. The current account comprises the [[Balance of Trade|balance of trade]] in visible goods such as manufactured items, in invisible goods such as tourism, insurance and other services, net income flows such as wages and investment income and net transfers such as international aid. The financial account includes net investment from abroad, long term capital flows from the purchase or sale of foreign [[Assets|assets]] such as land or investments in foreign companies. It also includes short term capital flows such as money moved from one country to another by multinational companies and profits or losses from investments in foreign currencies by speculators.
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The balance of payments is the total of all money flowing into a country minus all the money flowing out over a period. It is made up of the current account and the financial or [[Capital|capital]] account. The current account comprises the [[Balance of Trade|balance of trade]] in visible goods such as manufactured items or commodities, in invisible goods such as tourism, insurance and other services, net income flows such as wages and investment income and net transfers such as international aid. The financial account includes net investment from abroad, long term capital flows from the purchase or sale of foreign [[Assets|assets]] such as land or investments in foreign companies. It also includes short term capital flows such as money moved from one country to another by multinational companies and profits or losses from investments in foreign currencies by speculators.
See also: [[Trade Figures]]
See also: [[Trade Figures]]

Revision as of 12:31, 2 October 2009

The balance of payments is the total of all money flowing into a country minus all the money flowing out over a period. It is made up of the current account and the financial or capital account. The current account comprises the balance of trade in visible goods such as manufactured items or commodities, in invisible goods such as tourism, insurance and other services, net income flows such as wages and investment income and net transfers such as international aid. The financial account includes net investment from abroad, long term capital flows from the purchase or sale of foreign assets such as land or investments in foreign companies. It also includes short term capital flows such as money moved from one country to another by multinational companies and profits or losses from investments in foreign currencies by speculators.

See also: Trade Figures

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