DEFINITION OF 'BALANCE OF PAYMENTS (BOP)' A statement that summarizes an economy’s transactions with the rest of the world for a specified time period. The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts
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Effects of Corruption in Multinational Corporation’s [Student name] [Professor’s name] [Course title] [Date] Introduction Corruption can be defined as a spiritual or moral deviation from an ideal. Corruption come in different styles and that include bribery and funds embezzlement. Corruption has been the number one menace in many countries of the world. It impacts countries in many ways, impacting economy and development in a negative way. Corruption tends to raise the cost of government
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MFI 442 International Finance-Individual Assignments II Name Institution MFI 442 International Finance-Individual Assignments II Over the years, global businesses are increasing rapidly because most countries are attractive and have lucrative policies that attract foreign direct investments (FDIs). Foreign direct investments are simply business entities operated by a corporation in one country (the home country) but with subsidiaries in the foreign markets (the host countries) (Agarwal
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The Evolution of the International Monetary System The Gold Standard Under the classical gold standard, from 1870 to 1914, the international monetary system was largely decentralized and market-based. There was minimal institutional support, apart from the joint commitment of the major economies to maintain the gold price of their currencies. Although the adjustment to external imbalances should, in theory, have been relatively smooth, in practice it was not problem-free.4 Surplus countries did
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settlements account of the balance of payments? How are official settlements deficits and surpluses associated with movements in the international reserves of the balance of payments? Official settlement account is the sum of the current account, the capital account, the non-reserve financial account, and the statistical discrepancy. Official settlements offset international reserves. Official settlements surplus increase official reserve assets. Official settlements deficits decrease official reserve
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Journal of Finance and Economics, 2014, Vol. 2, No. 3, 58-59 Available online at http://pubs.sciepub.com/jfe/2/3 © Science and Education Publishing DOI:10.12691/jfe-2-3 Rethinking Multinational Enterprises’ Capital Budgeting in the Globalized New Millennium Fabio Pizzutilo* Department of Business and law studies, University of Bari *Corresponding author: fabio.pizzutilo@uniba.it A strict interpretation of the Ricardian assumptions on international trade leads to a conclusion in favour of
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services flow freely between business and citizens in one country to their counter parts in another. This section discusses exchange rates, exchange rate adjustments and systems, macroeconomic policy in an open economy, as well as international banking, including international currency reserves, debt, and risk. Learning Materials Open Economy Macroeconomics: Exchange Rates, Balance of Payments and Policy Exchange-Rate Systems With some notable exceptions, most countries in the world have their own
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(ii) Change in eternal debt to have a positive effect on the capital flight, (iii) current account deficit to have a negative effect on the capital flight, (iv) Change in official reserve to have a negative effect on the capital flight. Keywords: Economic growth; capital
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growth, such as the nation's saving and investment rates.4 During times when economic activity weakens, monetary policy can push its interest rate target (adjusted for inflation) temporarily below the economy's natural rate, which lowers the real cost of borrowing. This is sometimes known as "leaning against the wind." 5 To most economists, the primary benefit of low interest rates is its simulative effect on economic activity. By reducing interest rates, the Fed can help spur business spending
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Socio-economic Impact of Remittance on Households: A Study on Khulna City Md. Ashif Hossain Economics Discipline Social Science School Khulna University Khulna, Bangladesh August, 2013 Socio-economic Impact of Remittance on Households: A Study on Khulna City …………………………………… Md. Ashif Hossain Student Number: BSS 0 9 1 5 0 8 Session: 2011-2012 Supervisor ……………………………………. Sk. Sharafat Hossen Assistant Professor Economics Discipline Khulna University Khulna, Bangladesh
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