Question

Question 1:

Construct the balance of payment table for Japan for the year 2010 which is comparable in format to Exhibit 3.1, page 66 (this page number from the version 6e, if you cannot find it, please let me know), to calculate the missing information data (Services; balance current account; balance on financial account; Statistical discrepancies). The table is provided on the second page.

Please show your clearly calculation and explanation to support each number.

A summary of the Japanese Balance of Payments for 2000 (in $ billion)

	Credits	Debits
Current Account
(1) Exports	898.91
(1.1) Merchandise	615.81
(1.2) Services	117.30
(1.3) Factor income	165.80
(2) Imports		-717.72
(2.1) Merchandise		??
(2.2) Services		-135.56
(3.3) Factor income		-47.65
(3) Unilateral transfer	6.18	-16.85
Balance on current account	??
[(1) + (2) + (3)]
Capital Account
(4) Direct investment	-6.78	-50.17
(5) Portfolio investment	198.56	-71.04
(5.1) Equity securities	71.44	-25.04
(5.2) Debt securities	127.12	-46.00
(6) Other investment	-86.67	-91.00
Balance on financial account		??
[(4) + (5) + (6)]
(7) Statistical discrepancies		??
Overall balance	31.98
Official Reserve Account		-31.98

Question 2 :

1.  Explain the following terms on the table

    a] Merchandise trade

    b] Trade balance

    c] Service

    d] Invisible trade

    e] Factor income

    f] Unilateral transfers

Answer 1

a] Merchandise exchange = Ans :- (- 534.51)

"Products which include or deduct from the load of material assets of a nation by entering (imports) or leaving (sends out) its monetary region"

b] Trade balance = Ans :- (170.52)

"The equalization of exchange is additionally alluded to as the exchange balance or the worldwide exchange balance. A nation that imports a greater number of products and enterprises than it sends out regarding esteem has an import/export imbalance. Then again, a nation that sends out a larger number of products and ventures than it imports has an exchange excess."

c] Service = Ans :- (- 135.56)

"Any salary earned by giving specialized, counseling or other expert administrations as an aspect of their exchange, calling or business is considered as administration pay".

d] Invisible Trade = Ans :- (165.80)

"An undetectable exchange is a worldwide exchange that does exclude a trade of substantial products. Client assistance redistributing, abroad financial exchanges, and the clinical the travel industry all are instances of imperceptible exchange"

e] Factor Income = Ans :- (- 47.65)

"Factor salary is the progression of pay that is gotten from the elements of creation—the overall information sources utilized in the creation of merchandise or administrations so as to make a monetary benefit. Variables of creation incorporate land, work, and capital."

f] Unilateral Transfers = Ans :- (- 10.67)

"A one-sided move is a single direction move of cash, merchandise, or administrations starting with one nation then onto the next. The prefix "uni" signifies one. In a one-sided move, one gathering is making an exchange to the next gathering. They are not getting anything once again from the other party."