Similar to book keeping and accounting in business firms, international transactions - international trade activity and the accompanied international financial settlement, must be recorded in a nation’s accounts over every certain time period. These are referred to as balance of payments accounts. While the balance of payments records transactions during a certain period, the statement of international investment positions presents a country’s financial claims on, and financial liabilities to, the rest of the world at the end of a given period. So they mirror corporate income statements and balance sheets in a sense. Unlike the accounts of individual corporations, the entries to balance of payments accounts are an aggregate of all relevant international transactions carried out by a country’s residents - corporations, individuals and government agencies.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2009 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Wang, P. (2009). Balance of Payments and International Investment Positions. In: The Economics of Foreign Exchange and Global Finance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-00100-0_4
Download citation
DOI: https://doi.org/10.1007/978-3-642-00100-0_4
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-00106-2
Online ISBN: 978-3-642-00100-0
eBook Packages: Business and EconomicsEconomics and Finance (R0)