国际贸易专业英语第二版课件檀文茹主编 ISBN9787811343076lesson 4.ppt

Unit Four Balance of Payments Pre-reading Questions What is the balance of international trade? What problems can an imbalanced trade lead to? Do you have an idea about China’s balance of trade situation? Can the balance of trade have any influence on our daily life? Breakdown of the accounts current account (CA) capital accounts private capital account (KA) official reserve transactions account (ORT) current account (CA) the record of trade in goods and services and other current transactions, as opposed to trade in assets, which are obligations regarding the future. merchandise trade services investment income unilateral transfers capital accounts Trade in assets direct investment and portfolio capital private capital account (KA) the asset is traded among private citizens of the countries official reserve transactions account (ORT) the buyer or seller of the asset is a central bank--that is, the monetary authority of either the domestic or foreign government Breakdown of the Current Account merchandise trade services investment income unilateral transfers Breakdown of the Capital Account direct investment portfolio capital How Individual Transactions Are Recorded Whatever enters the country is recorded as a credit. Whatever leaves the country is recorded as a debit. Credits and Debits on the Capital Account The acquisition of a foreign asset counts as a debit on the capital account Foreign citizens’ acquiring assets : currency, treasury bills, bank loans, bonds, stocks, and direct investment counts as a credit Double-Entry Bookkeeping Every complete economic transaction is recorded twice, once as a debit and once as a credit. Paying for Imports Transactions are paid for in an immediate sense through the banking system. Other than paying for transactions by cash or check, the only other common method is trade credit. Paying for Asset Purchases The Balances Positive---favorable Negative---unfavorable Statistical Errors in the Payme