MGCR 382 Lecture 11: Lecture 11 ib

• 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 measurement of all international economic transactions between the residents of a country and foreign residents is called the balance of payments o a reflection of the supply and demand of a country"s products, services, financial assets, bop data is important for government policy makers and mne"s as it is a gauge of a nation"s competitiveness or health o an indication of pressure on a country"s foreign exchange rate o a signal of the imposition or removal of controls in various sorts of payments o a forecast of a country"s market potential. The accounts of the bop: composed of 2 primary sub accounts o current account: value of trade, investment income and unilateral transfers o capital/financial account : measured financial activity (ex: associated with the activities in the current account but also pure financial flows)