'Describe the relationship between the two components of the Balance of Payments'

The equaliser of Payments is a summarized recording of all transactions amongst Australia and the simpleness of the world of a given period of time, fundamentally it illustrates the tidy sum and money emanates in and out of Australias parsimoniousness. For ease of designation and analysis, the Balance of Payments is separated into two separate components namely the, rate of flow Account and the Capital and Financial account which deal one by one with certain aspects of Australias international public and private sector interactions. Resulting trends as a consequence of the calculation and analysis of the Balance of Payments much(prenominal) as the contemporary Account Deficit and the Terms of mass dumbfound signifi kindlet economic issues both in Australia and their spend a penny can have profound impact on the Australian economy abroad and as a result become a great priority for the Government. The Current Account is a section of the Balance of Payments which summa rises all international transactions involving goods, work, income (i.e. engage and dividends) and live transfers. Components of the Current Account include the goods balance, which is the difference among the judge of exports and the value of imports (X-M) resulting in either a plain or shortage and the services balance which is the balance of services exports and imports.

Other components of the Current Account include the income balance which atomic number 18 the profits get by Australian companys overseas and dividends take in by Australian investors overseas minus the same payments make overseas and als o Current transfers which are funds brought ! into Australia by immigrants, funds taken out of Australian by emigrants and gifts and donations to and from Australians from and to overseas. The set up of the Current Account section of the Balance of Payments is the net form of Goods and services plus net income plus goods and services. The Capital and Financial... If you need to get a full essay, order it on our website: BestEssayCheap.com

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