Ch 5 Global Trade [AP & Reg]

Capfinan currentshort term current

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Unformatted text preview: ns abroad minus the same income paid to minus foreigners. – Ex. Payments to American basketball players playing for European teams minus payments to Manu Ginobli, Yao minus Ming, Pau Gasol, Steve Nash and Dirk playing in the U.S. • Net Transfers Net – Foreign aid, pensions, money sent back home, etc. – Ex. Mexican migrant workers send money to family in Mexico. [Mexican workers send $24 billion back to Mexico.] Capital Account [net “debt forgiveness”] & Financial Account [foreign purchase “debt Financial of U.S. real & financial assets & U.S. purchase of foreign real & financial assets.] real foreign • Balance of Payments – sum of all the transactions that take place between U.S. residents and the residents of all foreign nations. • There are three components: the Current Account, the Capital/ Current Financial Account, and the Official Reserves. Financial Official The Current Account includes four things: Current four • 1. Goods [balance on goods (merchandise)] Goods • 2. Servic...
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