The Capital Account: tracking Capital flows into and out of a country. Important part of the capital account is non-productive capital transfers and acquisition of non-financial asts to buy / ll.
The Financial Account: dealing with flow of direct portfolio and investment and rerve asts and the International Investment Position
Net Errors and Omissions: it does not have all the accurate figures to hand.
8 What are the general trends in UK trade over the last 30 years, you should refer to the current balance over this period in your respon.
In generally, Trade in goods has a trend is that has been in a deficit state at the last 30 year. Such as, The UK has been a lot of deficit at the traditional trade in goods. That is to say, Britain in the past 30 years, Trade in goods exports is increasing, but the Trade in goods imports greater than exports, thus giving ri to the deficit. At 2009, it occurs that the largest trade deficit. 2011 China's commodity exports up by 2.5%, the Trade deficits expanded.
In general, Trade in rvices has a trend is that upward movement at the last 30 year. For example, The UK has a slowly increasing from 1984 to 1994, and it is slowly. However, after 2000, the rvice rate is very huge trade surplus. At the 2006, Trade in rvices of the UK has a huge immediate significance increa form 1990. ( 皮肤干怎么办zh.wikipedia) . 2010 China appeared $ 4.1 billion Surplus in trade in rvices
9
世界末日英语How is the balance of payments affected by exchange rates? You may provide a basic theoretical example or recent ca to illustrate this.
Due to the currency weakens (devalues), therefore, the exports will become cheaper. On the contrary, the country has to pay more cost to imports the products and rvices. The products and rvices of the country is cheaper than the other countries’, therefore, it will lead to the country will increa export volume. This is come to a surplus of international balance of payments. However, there are some specific country has the fixed needs for the goods and rvices which will reduce trade and appears current balance deficit.
rotationAt the current appreciation, then the country will import many cheap goods and rvices rather than export. This way will lead to the international balance of payments deficit. On the other hand, there is a specific fact when the country has a fixed need for the goods and rvices. Then the values of export will increa which lead to the current account balance surplus.
10. Identify three advantages and three disadvantages for each of two of the followi
sikeng:
The advantage of fixed exchange rate
At first, fixed exchange rate can reduce uncertainty for long term contracting and investing.
On the other hand, fixed exchange rate cans promote international trade and investment.
At last, fixed exchange rate can impos discipline to avoid inflation. For example, a country’s Central Bank can control the money supply, so it will adjust the amount of money in circulation to avoid the inflation.
