3.3+The+Balance+of+Payments

=Please watch the following Youtube videos to introduce this important topic =

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The Current Account



The Complete Balance of Payments there are many ways to structure the Balance of Payments- but here is the way it is structured for IB economics  == Most of the above should be self-explanatory. **Capital Transfers** include: Debt forgiveness; insurance claims between countries; grants for investment.
 * Transactions in non produced goods: ** transactions in land or resources (but they cannot be produced or they would be in the current account).

Finally remember that an increase in reserves is a negative as your own currency is flowing out of the country to purchase these reserves. In reality this is why the Balance of Payments balances.



Quick activity to check your understanding of how the Balance of Payments is constructed. How would the following be measured in the country's (in bold) BOP?

 Student copy: And another activity, where you match the word with the best description: 

[|Numerical worksheet]

And if you have finished the activities above, feel free to look at these (HL students only): 

<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">The structure of The UK's Balance of Payments. <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Watch the video below and make brief notes on where the UK does well and where it has a deficit on its' BOP. What reasons are given for this? <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">media type="custom" key="22183334"

<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 18px;">HL topics

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=<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Marshall lerner and the J curve =


 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Summary Notes **

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