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BALANCE OF PAYMENT - Coggle Diagram
BALANCE OF PAYMENT
DEFINITION
A statement of income and expenditure which shows a systematic record of all commercial and financial transactions during a period of one year
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A record of all transactions made between one particular country and all other countries during a specified period of time. BOP compares the value difference of the amounts of exports and imports, including all financial exports and imports
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BOP includes trade balance, foreign investments and investments by foreigners
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USES OF BOP
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Helps to forecast a country's market potential especially in short run or trend of international trade exchange
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Provides an extremely useful data for the economic analysis of the country's weakness and strength as a partner an international trade
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Explains the changes in money supply in important indicator for the determination in monetary policies
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