Question
What is the current situation with the country's balance of payments (trade and current account balance; financial and capital account balance)? What changes have taken
What is the current situation with the country's balance of payments (trade and current account balance; financial and capital account balance)? What changes have taken place in the past 5 years? The information to use is attached
Extra Info: You will find the Balance of Payments data in the World Development Indicators from the Gelman list of databases. However, this gets tricky. You know that CA + FA + OR = 0. With real data, we have a statistical discrepancy, SD. International reporting considers an extra account for trades in real assets (e.g., real estate) known as the Capital Account, KA. In addition, international reporting of FA includes OR, so forget about this separately (this will make your work a bit easier). Hence, CA + FA + KA + SD = 0 in our new equation. In addition, however, international reporting moves FA to the right-hand side, so the reported signs will not be what you expect. UGH! But think about CA + KA + SD = -FA, and you will be presented with the negative of FA so just switch signs for interpretation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started