MGCR 382 Lecture Notes - Lecture 9: Accounts Receivable, Floating Exchange Rate, Capital Flight

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: Donald Melville

Document Summary

International business transactions occur in many different forms over the course of a year. The bop must balance: double-entry book-keeping 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 signs) Credit: associated with payment inflows (positive signs) Hard to be completely accurate with all the transactions that take place and. Three main elements of actual process of measuring international economic activity other challenges that exist: identifying an international economic transaction, understanding how transactions create debits and credits, understanding the bookkeeping procedures for bop accounting. Includes: exchange of real assets exchange of goods and services for other goods and services or for monetary payment, exchange of financial assets exchange of financial claims for other financial claims. The bop is composed of two primary sub accounts: the current account. Measures the value of trade (goods and services), investments income and unilateral transfers: the capital/financial account.