ECON 1116 Chapter Notes - Chapter 21: Current Account, Floating Exchange Rate, Debt Relief
17 Apr 2016
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Majority fall into 2 categories: international trade and international asset transactions. International trade involves purchasing or selling currently produced goods or services across an international border: hiring indian call center. International asset transactions involve the transfer of the property rights to either real or financial assets between the citizens of one country to the citizens of another country: selling stocks, selling house to foreigner. Individuals and firms can only exchange with each other: currently produced goods and services or preexisting assets. Money is the most commonly exchanged asset. Transactions include: people trading either goods or services for money, people trading assets for money. The u. s commerce department"s bureau of economic analysis compiles a balance of payments statement each year: in dollars, organized into 2 broad categories: the current account, and the capital and financial account. Current account summarizes u. s trade in currently produced goods and services.
