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Mednarodne finance - vaje

By Judy Hill,2014-08-08 03:42
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Mednarodne finance - vaje

    International finance practical sessions

    Lecturer: dr. Vasja Rant

    2. Analysis of the balance of payments and the international investment position

A SELF-ASSESSMENT QUESTIONS

    1. What are autonomous and compensatory transactions in the balance of payments?

    2. Explain the following sub-balances of the balance of payments and their analytical

    relevance!

    a. Trade balance

    b. Current account balance

    c. Basic balance

    d. Overall balance

3. When is the balance of payments considered sustainable?

    a. In the long run

    b. In the medium run

    c. In the short run

    4. Which factors affect sustainability of a current account deficit?

    5. When is it reasonable to consider financing vs. structural adjustment of a current account

    deficit?

    6. When do we consider a country to be in the following positions vis-a-vis the rest of the

    world (ROW)?

    a. Net borrower from ROW

    b. Net lender to ROW

    c. Net capital importer from ROW

    d. Net capital exporter to ROW

    7. What is the link between the balance of payments and the national accounts?

    8. What is the basic difference in concepts between the balance of payments and the

    international investment position?

B - EXERCISES

    9. Uporabite spodnje podatke o tekočem računu plačilne bilance Avstralije in odgovorite na

    naslednja vprašanja

    Australia - current account, 1998 1999 2000 2001 2002 2003

    millions USD

    Goods: exports 55.884 56.096 64.052 63.676 65.099 70.577

    Goods: imports 61.215 65.857 68.865 61.890 70.530 ?

    Services: credit 16.181 17.399 18.677 16.689 17.906 21.205

     1

    Services: debet 17.272 18.330 18.388 16.948 18.107 21.638

    Income: credit 6.532 7.394 8.984 8.063 8.194 9.457

    Income: debet 17.842 18.968 19.516 18.332 19.884 24.245

    Current transfers: credit 2.651 3.003 2.622 2.242 2.310 2.767

    Current transfers: debet 2.933 3.032 2.669 2.221 2.851 ?

    a. Calculate the trade balance in 1998-2000 b. Calculate the balance of services in 1998-2000? c. Calculate the current account balance in 1998-2000? d. Was Australia a net recepient or a net contributor of unilateral transfers in 2003?

    e. What was the amount of unilateral transfers that Austalian residents appropriated

    to foreigners in 2002, if outflows of unilateral transfers exceeded inflows by $ 63

    millions?

    f. Which item in the table indicates that Australian residents have been paying

    income to non-residents for supplied labor and capital in 2003 and 2004.

    g. How much was the import of goods in 2002 if the current account balance

    amounts to $ -30.674 milliona in the same year?

    10. You obtain the following data about Korean balance of payments from the IMF's

    International Financial Statistics online.

    Balance of Payments South Korea 1998 1999

    millions USD

    40.371 24.522 Current Account, n.i.e.

    132.251 145.375 Goods: Exports f.o.b.

    -90.586 -116.912 Goods: Imports f.o.b.

    41.665 28.463 Trade Balance

    25.565 26.529 Services: Credit

    -24.541 -27.180 Services: Debit

    42.689 27.812 Balance on Goods & Services

    2.675 3.245 Income: Credit

    -8.313 -8.404 Income: Debit

    37.051 22.653 Balance on Gds, Serv. & Inc.

    6.737 6.421 Current Transfers, n.i.e.: Credit

    -3.416 -4.552 Current Transfers: Debit

    171 -389 Capital Account, n.i.e.

    464 95 Capital Account, n.i.e.: Credit

    -293 -484 Capital Account: Debit

    -8.381 12.709 Financial Account, n.i.e.

    -4.740 -4.198 Direct Investment Abroad

    5.412 9.333 Dir. Invest. in Rep. Econ., n.i.e.

    -1.999 1.282 Portfolio Investment Assets

    42 -271 Equity Securities

    -2.041 1.553 Debt Securities

    775 7.908 Portfolio Investment Liab., n.i.e.

    3.856 12.072 Equity Securities

    -3.081 -4.164 Debt Securities

    412 401 Financial Derivatives Assets

    -1.066 -915 Financial Derivatives Liabilities

    6.693 -2.606 Other Investment Assets