Balance ò Payment

Deardorff (2001) stated that, direct foreign investments refer to the particular countries and kinds of countries toward which a country's exports are sent, and from which its imports are brought, in contrast to the commodity composition of its exports and imports. Besides, direct foreign investments also can be defined as the situation in which a foreign investor owns10% or more of the ordinary shares or voting power of a local company. Thus, the pattern that the direct foreign investments follow is that of a bilateral trade.

Simply speaking, if the rate is high, firms will find their returns on investments increase domestically. That, in turn, creates a higher demand for the U.S. currency. Effectively, the exchange rate also increases. It pushes the dollar value higher compared to other currencies. So even if there has been nothing changed in the input of a firm, the output now all of a sudden becomes more expensive in the countries where it exports its products to due to the new exchange rate. Export is reduced for that reason. As of for import, other countries would be very happy to see the change in exchange rate. Their products now are cheaper making import value goes up. As we now, the net exports equals export minus import. Export goes down and imports go up means net export goes

The exchange rate is the price of one currency in terms of another. A fall in the value of the pound is known as a depreciation and affects both the level of aggregate demand and the costs of production for firms in the UK economy. //One way in which a fall in the exchange rate can be beneficial for the UK economy is that it “should help UK exporters whose goods will be cheaper overseas”. An UK exports are priced in Sterling, and when Sterling can be purchased more cheaply, this makes our goods more affordable. An increased demand for UK exports is an injection into the UK economy and would serve to boost aggregate demand, enabling UK firms to make use of any spare capacity in order to increase output. This would also lead to a higher

Before we look at these forces, we should sketch out how exchange rate movements affect a nation 's trading relationships with other nations. A higher currency makes a country 's exports more expensive and imports cheaper in foreign markets; a lower currency makes a country 's exports cheaper and its imports more expensive in foreign markets. A higher exchange rate can be expected to lower the country 's balance of trade, while a lower exchange rate would increase it.

Changes in exchange rates are the result of changes in demand and supply factors for goods and services, such as changes in tastes, relative incomes, and relative prices. Under a flexible-rate policy, all domestic prices are linked with foreign prices. Any change in the exchange rate automatically alters the prices of all foreign goods to domestic goods. The price change alters the relative attractiveness of imports and exports and maintains equilibrium in each trading partner's balance of

Discussed with Mrs.Evans parent overdue balance of $1,050. Per Mrs.Evans the parent needs to make 17 payments of 61.76/week towards his outstanding balance plus $13.00 week for tuition fee. I spoke to the father Jean informed him that he has an overdue balance of $1050. I explained he had agreement with Tashari and Mrs.Evans to make payments of $100.00 to catch up on his pastdue balance plus $13.00 tuition fee. This payment was to be made every week. Only one payment of $125 was made as of 12.4.015. I told him that we are going to work with him and lower his weekly payment to $61.76 plus $13.00 tuition fee totalling $74.76 per week. ,but he has to make payments every week or failure to do this will terminate child care services. I also explained

▪ expected to decrease in the next five years at annual rate of 2.4% to 172.16 billion

Since reduced interest rate made it unattractive to save money, currencies were less demanded thereby causing fall in the currency values. This therefore had a multiplier effect on export and import. This explains why during post crisis period, UK exports became more competitive.

An outstanding loan that one country owes to another country or institutions within that country. (Investopedia, 2015) Each quarter in our terms of trade Australia’s imports are greater than our exports causing deficits in the current account. Because Australia borrows and buys so much from overseas, we need to try and balance it out by achieving a surplus in our capital account. Since Australia will always need to trade because of comparative and absolute disadvantages, a relatively high or rising index is vital to reduce the current account as low as possible. A higher index means Australia’s export prices will increase faster than import prices, meaning Australians will get more money for the same amount of goods. (Murray, 2015) However,

Helen I am currently working on a solution to clear up my balance, the reason I still have a balance is because the Army has not paid my tuition assistances. It is very tough for me to clear the balance at this moment as it is not my fault however if I have to pay this because the Army didn’t I will just currently is not the best time for me as I am currently in the process of fulfilling my contract out of the military, I should be out within the next 14 days. This means I have to relocate my family from Fort Bragg North Carolina to Boca Raton, this comes with an enormous expense as you can imagine. I have some concerns that I hope you will be able to assist me with. Is there any way I can be admitted into the school with my an unofficial copy of my transcripts until I am able or the Army is able to pay the balance? This is pending and should my current plan does not

• Exchange rates. These play a large part in the value of net exports. A fall in a countries exchange rate will reduce the price of exports and raise the price of imports, thus exports should rise and imports fall - resulting in an increase in net exports. A rise in a countries exchange rate will raise the price of exports and make imports cheaper, therefore making exports fall and imports rise. The overall effect will be a fall in net exports.

Interest Rate Effects on Exchange Rates. Assume U.S. interest rates fall relative to British interest rates. Other things being equal, how should this affect the (a) U.S. demand for British pounds, (b) supply of pounds for sale, and (c) equilibrium value of the pound?

This likewise has a direction on the profitability of this economy overall, and Britain 's aggressiveness abroad. Dealing with the economy includes both full scale and small scale monetary strategy.

The term balance of payments refers to the accounting record of the country’s monetary transaction with the rest of the world. These transactions include the exports and imports of goods and services of the country, financial capital and financial transfers. The balance of payment record is a way to allow countries to recognize potential business partners for trade and to evaluate a country’s performance in the global economic competition. .

The current account balance is a part of the balance of payments. A country’s current account balance provides a measure of how much the country’s position in international wealth