Table: Vietnam's International Transactions, 2007 (Unit: millions U.S. dollars) 48561 -58999 A. Current account balance Exports of goods Imports of goods Trade balance Exports of services Imports of services Balance of trade in services Receipts of investment incomes Payment of investment incomes Net income transfers C. Financial accounts Net FDI inflows Outflows of FDI Inflows of FDI Portfolio Investment Derivatives Other investment Changes in official reserve assets 6516 -184 6700 6243 0 4971 6030 -6785 1166 -3356 6430 D. Errors and omissions -565 0 B. Capital account Source: IMF Staff Report E. Balance of Payments b. Based on the economic situation in 2001, discuss the disequilibrium (surplus or deficits) in the current account balance, financial account balance, and the balance of payment. c. It has been argued that large capital inflows can do both goods and harms to the recipient country. While capital inflows contribute to domestic investment and overall economic growth, large and volatile capital inflows can lead to macroeconomic instability. Discuss this argument, and use Vietnam's official statistics in 2007 (BOP, money supply, inflation, etc) to support your discussion. Table: Vietnam's International Transactions, 2007 (Unit: millions U.S. dollars) 48561 -58999 A. Current account balance Exports of goods Imports of goods Trade balance Exports of services Imports of services Balance of trade in services Receipts of investment incomes Payment of investment incomes Net income transfers C. Financial accounts Net FDI inflows Outflows of FDI Inflows of FDI Portfolio Investment Derivatives Other investment Changes in official reserve assets 6516 -184 6700 6243 0 4971 6030 -6785 1166 -3356 6430 D. Errors and omissions -565 0 B. Capital account Source: IMF Staff Report E. Balance of Payments b. Based on the economic situation in 2001, discuss the disequilibrium (surplus or deficits) in the current account balance, financial account balance, and the balance of payment. c. It has been argued that large capital inflows can do both goods and harms to the recipient country. While capital inflows contribute to domestic investment and overall economic growth, large and volatile capital inflows can lead to macroeconomic instability. Discuss this argument, and use Vietnam's official statistics in 2007 (BOP, money supply, inflation, etc) to support your discussion