ECON 2010 Chapter : ECON 2010 Ch 15 Notes
Document Summary
Table 18. 1 shows the balance of payments for the united states in 2010. Middle east, and it ran trade surpluses with the united states, europe, and asia. But these other two items are relatively small, so it is often a convenient simplification to think of net exports as being equal to the current account balance. States buys a bond issued by a foreign company or government or when a u. s. firm builds a factory in another country. There is a capital inflow into the united. Net foreign investment is also equal to net foreign direct investment plus net foreign portfolio investment. A nonproduced, nonfinancial asset is a copyright, patent, trademark, or right to natural resources: prior to 1999, the capital account recorded all the transactions included now in both the financial account and the capital account. In other words, capital account transactions went from being a very important part of the balance of payments to being a relatively unimportant part.
