POL 3 Lecture Notes - Lecture 11: Debt Relief, Electric Power Quality, International Political Economy
14 Mar 2017
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International political economy (ipe) = study of the interrelationship between politics and economies. Net border flow of goods and services exports (selling) - imports (buying) If this number is positive, overall, the current account will be positive. If this number is negative, overall, the current account will be negative. More is going out than coming in a country runs a current account deficit. Interest and dividend earnings (money coming into the country) on foreign investments. How much 26165 is coming into your country via trade and other things. Net flows of portfolio investment = investments in stocks and bonds; transfers of money to buy stocks and bonds. + net flows of foreign direct investment (fdi) = capital flows involving the buying or construction of manufacturing plants (and other facilities), and buying of real estate in another country. How much 26165 your country is investmenting outside. Surplus = spending less than what you"re getting. Deficit = spending more than you"re getting.
