Balance of Payments Analysis

China BOPCountry: China

COC: Apple Inc.

Balance of Payments Analysis

a) Find your country’s BOP statement and attach a copy.

[Attach BOP statement as separate file on Canvas]

b) Does the country use the basic BOP system format of the IMF system or something very different? Can you find any official statement about adoption of the IMF system (try the country’s Central Bank for this type of information)?
[Your Answer]

c) If the country does not use the standard IMF format, what is different in the format used? Describe any major differences and explain why there might be differences if you can (using facts or opinion).

[Your Answer]

d) What are the country’s Balances for Goods/Merchandise Trade, Service Trade, Primary Income, Secondary Income, and the overall Current Account? (Use a minus sign to represent deficits.)

Figure 1: Selected Account Balances
[Year of Publication]
[Scale]

Line Item

Balance

Goods/Merchandise Trade

[Your Answer – don’t forget basis of unit and scale!]

Service Trade

[Your Answer – don’t forget basis of unit and scale!]

Primary Income

[Your Answer – don’t forget basis of unit and scale!]

Secondary Income

[Your Answer – don’t forget basis of unit and scale!]

Current Account

[Your Answer – don’t forget basis of unit and scale!]
[Your Citation]

e) What are “off-setting” accounts for any surpluses or balances across the entire BOP statement? (Use the Offsetting slides from the BOP PowerPoint to address this question – Slide #17 and 18, but apply the concept to YOUR country’s balance of payments account.)

[Your Answer]

f) Using the country’s most recent available full year’s BOP as a guide, track back the two preceding years, then 10 years before the most recent year. You now have four separate BOPs. Check the net balances (inflows and outflows) of key accounts across the years (Goods, Services, Overall Trade, Primary and Secondary Income, Current Account, FDI (Direct and Portfolio), Government Reserves, and debt and loans). Do you see any major changes or patterns? Provide a chart showing the figures for these categories.

Figure 2: Key Account Balances
[Scale]

Line Item

[Year 0]

[Year -1]

[Year -2]

[Year -10]

Goods/Merchandise Trade

Service Trade

Primary Income

Secondary Income

Current Account

FDI – Direct Funds

FDI – Portfolio Funds

Reserve Assets (Govt)

Other Investment
(Debts and Loans)
[Your Citation]

Figure 3: Key Account Balances

[Scale]

[Use the Insert menu to insert a chart based on the statistics reported in Figure 2]
[Your Citation]

[Your Explanation of Chart]

g) Can you explain any anomalies, changes, or patterns you note in your response to Question F based on your knowledge of the country’s economic or political history?

[Your Answer]

h) Taking all of your figures above, are there are any important “issues” that would have relevance for the way your COC would operate in your country (i.e. what aspects of the BOP are positive for your COC and what parts are negative?)

[Your Answer]

i) Is there any other aspect of the country’s BOP statement worth noting?

[Your Answer]

Bibliography

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