Please post a response to the following statement and respond substantively to postings below. Monitoring of the various sub-accounts a country’s balance of payments activity is helpful to decision makers and policy makers on all levels of government and industry in detecting the underlying trends and movements of fundamental economic forces driving a country’s international economic activity.
1. A country’s balance of payments gives us the summary of the flow of funds in current account and capital account. Therefore by monitoring various sub-accounts will benefit the government to track their spending. In addition, they will be able to predict a country’s surplus or a deficit by monitoring the flow of funds. Sub accounts are very important since a country could be spending money on things which are not necessary and can ignore important investments. This way by looking a country’s sub account will give them a detailed view of their spending and profits.
2.It is important to monitor the various sub accounts in a country’s balance of payments. The balance of payments is the summary of all the transactions included in the current account and capital account, and it includes data over a given period of time. It is important to monitor the sub accounts, such as those in the capital account because it can help decision and policy makers on all levels of government and industry to be able to see how money is being spent in areas such as payments of merchandise and services. This will help to determine the balance of trade, and if there is a deficit. Monitoring these sub accounts is basically helpful because it helps to keep track of all funds whether they are inflows or outflows for the country, and also helps to monitor investments based on international economic activity.
3. I agree; monitoring the balance of payments can give key insight into trends. A firm could use the balance of payments to graph the changes quarter-over-quarter to identify import/export trends for different sectors in the economy. In conjunction with other information on demographics, the birth/death rate, income, and credit an MNC can position itself to better weather the business cycle. Macroeconomic trends and the impact of credit supply/demand are having a greater influence on a countries ability to grow (create wealth); in a global economy, being well versed in interpreting and forecasting a nations imports/exports can give an MNC an advantage over a competitor that does not explore such information.
Place an order of a custom essay for this assignment with us now. You are guaranteed; a custom premium paper being delivered within its deadline, personalized customer support and communication with your writer through out the order preparation period.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more