Unit 7 Notes - Balance of Payments

Balance of Payments

- Refer to Notes & chart

- Formulas

·      Balance of Trade – Goods Exports + Goods Imports

·      Balance on Goods and Services – Good Exports + Services Exports – Goods Imports + Services Imports

·      Balance on Current Account – Net Exports +

·      Balance on Capital Account – Foreign Purchases + US purchases of Foreign Assets