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11732800
BOP Surplus
Description
Mind Map on BOP Surplus, created by 17Y6C32 KOH HUI WEN on 11/12/2017.
Mind Map by
17Y6C32 KOH HUI WEN
, updated more than 1 year ago
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Created by
17Y6C32 KOH HUI WEN
over 6 years ago
25
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Resource summary
BOP Surplus
Current Account Surplus
↑ (X-M)
Relative Growth Rates
Trading partner's growth rate > Growth rate of domestic country
Trading partner's RNY ↑ > Domestic country's RNY ↑
↑ Purchasing power
↑ Consumption (including M)
Trading partner's M is domestic country's X
↑X > ↑M
↑ (X-M)
↑ Competitiveness of Domestic G&S
↑ Price competitiveness
Relative Inflation Rates
Lower inflation rates than rest of the world
X are relatively cheaper/ M are relatively more expensive
↑ X / ↓ M as consumers switch from foreign G&S to domestic G&S
↑ (X-M)
↑ Non-price competitiveness
↑ Quality of domestic G&S
↑ X / ↓ M as consumers switch from foreign G&S to domestic G&S
↑ (X-M)
Government Policies
Exchange Rate Depreciation
Domestic currency now worth less in terms of foreign currency
X becomes relatively cheaper in terms of foreign currency/ M becomes relatively more expensive in domestic currency
↑ X / ↓ M as consumers switch from foreign G&S to domestic G&S
↑ (X-M)
Contractionary Policies (CMP & CFP)
↓ AD (reverse multiplier)
↓ RNY
↓ Purchasing power
↓ Consumption (including M)
↓ M
↑ (X-M)
Protectionism
Tariff
↑ Price of M
Consumers less willing and able to buy M
Switch from M to domestic substitutes
↓ M
↑ (X-M)
Quota
↓ Quantity of M
↓ M
↑ (X-M)
Subsidies
↓ Unit cost of production
↓ Price of X
↑ X
↑ (X-M)
Improve BOT
Improve Current Account
Capital and Financial Account Surplus
↑ FDI
Changes in Exchange Rate
Appreciation
Domestic currency now worth more in terms of foreign currency
↑ Profits when repatriated back to home country
↑ Expected Rate of Return
↑ FDI
Depreciation
Domestic currency now worth less in terms of foreign currency
↓ Unit cost of production
↑ Profits
↑ Expected Rate of Return
↑ FDI
Develop Areas of Comparative Advantage
↑ Productivity, ↓ Unit cost of production
↑ Expected Rate of Return
↑ FDI
Low and Stable Inflation Rate
Sign of booming economy, ↑ certainty of streams of revenue
↑ Expected Rate of Return
↑ FDI
↑ Hot Money inflow/ ↓ Hot Money Outflow
Relative Interest Rates
Higher interest rate than rest of the world
↑ Expected Rate of Return
↑ Hot Money inflow/ ↓ Hot Money Outflow
Exchange Rate Appreciation
Domestic currency now worth more in terms of foreign currency
↑ Profits when repatriated back to home country
↑ Expected Rate of Return
↑ Hot Money inflow/ ↓ Hot Money Outflow
Improve Capital and Financial Account
Media attachments
Graph (binary/octet-stream)
Politician (binary/octet-stream)
Decrease Pp (binary/octet-stream)
Profit (binary/octet-stream)
Bank (binary/octet-stream)
Computer (binary/octet-stream)
Export Import (binary/octet-stream)
Phone Evolution (binary/octet-stream)
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