account on one side and the capital and financial accounts on the other side should balance each other out due to the double entry of each transaction. [ Current Account + Financial Account + Capital account + Official Reserve Account = 0 ] For example, if a country has a positive capital and financial accounts, it will have a current account deficit - because the debit is more than the credit. It means that this country is borrowing and using other countries savings to meet its local investment
Words: 1611 - Pages: 7
Economics The UK Economy and Globalisation WHY COUNTRIES TRADE GLOBALISATION Globalisation | Expansion of world trade in goods and services leading to greater international interdependence | Globalisation usually leads to: * An increase in outsourcing * Large sums of money being transferred from country to country for financing When did Globalisation First Start? There are three major stages of globalisation: Stage | When? | What? | 1 | 1870Increase in international
Words: 4532 - Pages: 19
price levels (include exchange rates). Organization of the course 1) Introduction – chapter 13 2) Interest rate parity (how exchange rate is determined by the flows of capital) and exchange rate overshooting – chapters 14 & 15 3) Purchasing power parity and the exchange rate in the long run (how exchange rate is determined by the flows of goods and the determinants of exchange rate in the long run) – chapter 16 4) The DD-AA model (the model that explains how exchange rate and output are determined in
Words: 1017 - Pages: 5
one of the primary functions of the bank. Lending of funds to individuals, traders, businessmen and industrial enterprises, is one of the important activities of commercial banks. Interest earns on these loans and advances are the major source of income of the banks. Interest given on deposits is lower than the interest received on such loans and advances. Amount deposited by the customers forms the main source of loans and advances. Banks lend money in various forms for various purposes. Operation
Words: 6615 - Pages: 27
3.0.1 International Business - University Assessment 100 Marks Course Content 1. Overview of the International Business Process 2. PEST factors affecting International Business 3. Government influence on trade 4. International Trade Theories 5. FDI 6. Country Evaluation and Selection 7. Collaborative Strategies 8. International Marketing 9. International Trade Agreements 10. International Trade Organizations 11. International HR Strategies . 12. International
Words: 2761 - Pages: 12
INTEREST RATE AND MONEY MARKET Interest rate The discount rate is the rate of short-term funds which the central bank lends to the commercial banks. When this rate changes, the commercial banks also change their base rate. Banks make profits from the differences between the interest rate they charge borrowers and the rates they pay to depositors. The interest rate borrowers pay to banks depends on their creditworthiness. This is the lender’s estimation of the borrower’s present and future solvency
Words: 355 - Pages: 2
pharmaceutical industry (Triantis 2000). All of the five stages of Wahoo Genomics’ R&D events involve a high level of technological risks. For instance, 95% of new animal drugs are abandoned during the phase of preclinical trial stage. Such high failure rate indicates a high level of R&D outcome risk, and such risk is compensated by potential high returns for investors. Specifically, a high volatility estimate reflects management’s expectations of the probability that the drug can successfully be marketed
Words: 1950 - Pages: 8
arose with regulation and oversight. These structural weaknesses created instability and ultimately multiplied the effects of the Asian Financial Crisis in 1997. With strong encouragement of the IMF, Indonesia adopted a set of policies to protect currency values and penalize insolvent companies, in order to restore investor and creditor confidence in the country. Despite assistance from the International Monetary Fund, the Crisis devastated the Indonesian economy and brought on massive social unrest
Words: 4046 - Pages: 17
Investment Foreign-Invested Enterprise General Corporation Gender-related Development Index Gross Domestic Product Gross National Product General Statistical Office Human Development Index International Monetary Fund Joint Venture Nominal Effective Exchange Rate Official Development Assistance Private Enterprise Public Expenditure Review Poverty Reduction and
Words: 10004 - Pages: 41
FEDERAL STATE-FUNDED EDUCATIONAL INSTITUTION OF HIGHER PROFESSIONAL EDUCATION FINANCIAL UNIVERSITY UNDER THE GOVERNMENT OF THE RUSSIAN FEDERATION Department of Macroeconomic Research paper “Banking system and its role in national economy of the USA” Prepared by Yusifova Sevindzh Supervisor: Orusova O. V. Department of Macroeconomics Moscow-2014 Contents Introduction
Words: 5503 - Pages: 23