Term Paper on Balance of Payment

Balance
of Payment Term Paper:

Balance of Payment is the register of the finance received by the country in the result of trade and the finance which was delivered abroad during the certain period.

In brief, Balance of Payment is the analysis of the country’s export and import and evaluation of the state budget according to this process. It is natural that a country can not exist without the international relations and international trade in particular, because every country feels shortage of the chosen resources which can be bought only abroad. When the country sells something to another country, such goods and service are called export goods and when the country purchases something, it is called import. It is obvious that when the country imports more than exports, it means that it does not have enough resources for the production of the useful goods and services which can be popular abroad.

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The result of the high import is the reduction of the economic growth of the country and the reduction of the quality of life. On the contrary, if the country produces a great number of various goods which can be interesting abroad, its economic growth is high and the country survives prosperity. Logically, it is of vital importance to increase the country’s export index in order to stimulate its economic development. Balance of Payment is the record of all the export and import calculations and the experts in the field of macroeconomics are able to analyze the data professionally and make everything possible to improve the country’s international position and its economic relations with other countries.

The student who has the intention to receive deep knowledge on macroeconomic relations is supposed to devote much time to the research on the issue of Balance of Payment in order to understand the importance of import and export for the country’s economic growth. The student is obliged to look through the topic in detail in order to find out about the major issues on it. it is important to understand the approach towards the calculation of Balance of Payment, the principles of its functioning, its structure, the officials who work it out and its influence on the economic development of the country.

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