Describe the basic-transfer mechanism. Using the list of credits and debits in Table 13. 2, identify which
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Describe the basic-transfer mechanism. Using the list of credits and debits in Table 13. 2, identify which ones would fit into the basic-transfer equation.
How does the basic transfer help us analyze developing-world debt problems?
Table 13. 2
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TABLE 13.2 Credits and Debits in the Balance of Payments Account "Positive" Effects (Credits) 1. Any sale of goods or services abroad (export) 2. Any earning on an investment in a foreign country 3. Any receipt of foreign money 4. Any gift or aid from a foreign country 5. Any foreign sale of stocks of bonds "Negative" Effects (Debits) 1. Any purchase of goods and services abroad (import) 2. Any investment in a foreign country 3. Any payment to a foreign country 4. Any gift or aid given abroad 5. Any purchase of stocks or bonds from abroad
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The basictransfer mechanism refers to the movement of funds between countries which can be tracked through a nations balance of payments account The b...View the full answer
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