Interpret Significance of the Balance of Payments Interpret the Significance of the Balance of Payments
Accomplish external research, and then write a paper in which you summarize, analyze, and interpret the significance of the Balance of Payments (BOP).
Please
organize your paper in the following way:
1. Define the BOP, and discuss the general accounting that goes into the development of the statement.
2. Access the Current Account for the US from the International Monetary Fund web site, and report these figures in both tables, and graphic format for the
years 2017 to present. Explain the nature of the metrics that are presented. Access the Financial Account for the US from the International Monetary Fund web
site, and report these figures in both tabular and graphic format for the years 2017 to present. Explain the nature of the metrics presented.
3. Using the data that you constructed in Part 2 above, describe the meaning that you would take from these metrics and trends for a multinational business
manager. Further, discuss how the BOP data is related to exchange rates. Discuss the meaning of the J-curve and what that can mean for the business manager at a Multinational firm.
