国际金融Chapter Two

• A debit (-) is a flow for which the country must pay. Such as : • The country’s imports of goods; • Purchases by firms in this country of consulting services from providers located in foreign countries; • Purchases by investors in this country of the equity shares of a foreign company from the foreigner that previously owned the shares. • In each of these cases is obligated to make a payment to a foreigner.
• The $ 8 million credit is straightforward since this is just another merchandise export, for which the United States must be paid. • The accountants get around the fact that the United States was not paid by Egypt by inventing a debit item for the unilateral transfer (gift) to Egypt. They invent the fiction that the United States received $ 8 million in goodwill- or gratitude- from Egypt for its gift of wheat.
• Here are four possible items: • A U.S. resident increasing his holding of a foreign financial asset (a stock, a bond, or an IOU from a loan) is a debit. • A foreign resident increasing her holding of a U.S. financial asset is a credit. • A U.S. resident decreasing her holding of a foreign financial asset is a credit. • A foreign resident decreasing his holding of a U.S. financial asset is a debit.
• Income flows are mainly payments to holders of foreign financial assets. • Income flows also include payments to foreign workers who are only in the country for a short time. • Unilateral Transfers are the items that keeps track of gifts that the country( and private) makes and gifts that receives. • In addition to government grants in aid to foreigners, private individuals also make unilateral transfers.
3.1 Current Account
• The current account includes all debit and credit items that are exports and imports of goods and services, income receipts and income payments, and gifts. • Exports and imports of goods are easy to understand. • Travel services include the expenditures of foreign visitors on such items as hotel rooms, meals, and transportation.
2. Accounting Principles
• A credit (+) is a flow for which the country is paid. Such as : • The country’s exports of goods; • Purchases by foreign tourists traveling in this country; • Foreigners’ investing in a new issue of the country’s government bonds. • In each of these cases is entitled to receive payment from a foreigner.
3.2 Financial Account
• The net value of flows of financial assets and similar claims (excluding official international reserve asset flow ) is the private financial account balance. • The values reported in the financial account are for the principal amounts only of assets traded-any flows of earnings on foreign assets are reported in the current accotransportation, insurance, education, financial, technical, telecommunications, and other business and professional services. • Nations also pay each other royalties for use of technologies or brand names. • If we add up all items for exports and imports of goods and services, we get the goods and services balance. It measures the country’s net exports. • It is often called the trade balance.
3. A Country’s Balance of Payments
• There are three major broad categories of items that define the three major parts of a country’s balance of payments: • The current account • The financial account • The Changes in official international reserves.
• Each transaction involves an exchange of value for value. • Each transaction has two items, one positive and one negative, of equal value . • Double –entry bookkeeping means: the country’s balance of payments always “balances”. • Sub-balance could be positive, zero, or negative, • The balance that is positive is called a surplus, and negative balance is called a deficit.
• The net value of the flows of goods, services, income, and unilateral transfers is the current account balance. • If this is positive( a surplus), the nation earns that much in extra assets or reduced liabilities in its dealings with other countries. • If it is negative( a deficit), the country must pay by giving up assets or increasing its liabilities.
批注本地保存成功开通会员云端永久保存去开通
Chapter Two
Payments among Nations
1. Introduction
• This chapter examines the framework used to summarize a country’s international transactions. • The scorecard is the balance of payments. • The balance of payments is the set of accounts recording all flows of value between a nation’s residents and the residents of the rest of the world during a period of time.
• In addition to government grants in aid to foreigners, private individuals also make unilateral transfers. • One large kind of private transfer is international migrants’ remittances of money and goods back to their families in the home country. • Another kind of private aid is charitable giving, such as international famine relief.
The U.S. government simply gives $8 million in foreign aid to the government of Egypt in the form of wheat from U.S. government stockpiles.
• Credit(+) Debit(-) • Merchandise export $8 • Unilateral transfer to Egypt $8
• The balance of payments can show us: • A wealth of information about a country’s international activities. • Key to understanding how people trade one country’s money for that of another country. • Implications for macroeconomic concerns like growth, inflation, and unemployment.