One of the more important measures in regard to international economics is the balance of payments

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Business Finance

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00 to 1100 words essay. One of the more important measures in regard to international

economics is the balance of payments. Think of it as a national

accounting measure that looks at the flow of goods and services into and

out of an economy in a given period of time. It also shows capital

flows into and out of a country. Until 1980, the United States tended to

run a positive-to-neutral balance of payments position and was a

creditor nation. In the course of the past 30 years, the United States

has moved to a negative balance of payments and to being a debtor

nation.



Review and discuss the following:

  • Discuss the importance of the balance of payments as an accounting measure.
  • Discuss the current account and its components and the capital and financial accounts and their components.
  • How important is the U.S. deficit in traded goods in regard to the balance of payments?

Here are some relevant articles to help you with this assignment:

  • The Changing Nature of the U.S. Balance of Payments
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    Explanation & Answer

    Attached.

    This dataset gives corporate data on 22 US public utilities. We are interested in forming groups of similar
    utilities. The objects to be clustered are the utilities. There are 8 measurements on each utility described
    below. An example where clustering would be useful is a study to predict the cost impact of
    deregulation. To do the requisite analysis economists would need to build a detailed cost model of the
    various utilities. It would save a considerable amount of time and if we could cluster similar types of
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    from these models to estimate results for all utilities. The objects to be clustered are the utilities and
    there are 8 measurements on each utility. X1: Fixed-charge covering ratio (income/debt) X2: Rate of
    return on capital X3: Cost...


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