Question 1:

Construct the balance of payment table for Japan for the year 2010 which is comparable in format to Exhibit 3.1, page 66 (this page number from the version 6e, if you cannot find it, please let me know), to calculate the missing information data (Services; balance current account; balance on financial account; Statistical discrepancies). The table is provided on the second page.

Please show your clearly calculation and explanation to support each number.

A summary of the Japanese Balance of Payments for 2000 (in $ billion)

	Credits	Debits
Current Account
(1) Exports	898.91
(1.1) Merchandise	615.81
(1.2) Services	117.30
(1.3) Factor income	165.80
(2) Imports		-717.72
(2.1) Merchandise		??
(2.2) Services		-135.56
(3.3) Factor income		-47.65
(3) Unilateral transfer	6.18	-16.85
Balance on current account	??
[(1) + (2) + (3)]
Capital Account
(4) Direct investment	-6.78	-50.17
(5) Portfolio investment	198.56	-71.04
(5.1) Equity securities	71.44	-25.04
(5.2) Debt securities	127.12	-46.00
(6) Other investment	-86.67	-91.00
Balance on financial account		??
[(4) + (5) + (6)]
(7) Statistical discrepancies		??
Overall balance	31.98
Official Reserve Account		-31.98

Question 2 :

1. Explain the following terms on the table

a] Merchandise trade

b] Trade balance

c] Service

d] Invisible trade

e] Factor income

f] Unilateral transfers