MGCR 382 Lecture Notes - Lecture 9: Bretton Woods System, Floating Exchange Rate, Accounts Receivable

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: Jan J Jorgensen, Donald Melville

Document Summary

International business transactions occur in many different forms over the course of the year. The measurement of all international economic transactions between the residents of a country and foreign residents is called the balance of payments. Essentially, the bop is a reflection of the supply and demand of a country"s products, services, financial assets Bop data is important for government policymakers and mnes as it is a gauge of a nation"s competitiveness or health. An indication of pressure on a country"s foreign exchange rate. A signal of the imposition or removal of controls in various sorts of payments. A forecast of a country"s market potential. Double entry bookkeeping system to record all economic transactions between the residents of a country and foreign residents in a given period. Debit: associated with payment outflows (negative sign) Credit: associated with payment inflows (positive sign) Hard to be completely accurate with all the transactions that take place and other challenges that exist.