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THE BALANCE OF
  PAYMENTS

CURRENT AND CAPITAL ACCOUNT
The Balance of Payments

 What is balance of payment?
 A record of the trade between a country and the rest
    of the world.
   It consists of the current account and capital account
   What is current account?
   A record of visible trade account and invisible trade
    account
   What is Capital account?
   record the transfer of financial assets between a
    country and the rest of the world.
Group Activity

 Divide yourself into groups of three or four students.
 Each group receives a sheet of paper which has
  examples of trade between Brunei and the rest of the
  world.
 Each group needs to put each examples into the
  categories.
 For example: Brunei buy Airbus from United States
  or Brunei sell oil to Japan.
 Into which categories should you put this examples.
Examples


             Balance of Payments


 Current Account               Capital Account
  Visible Trade Account

Export            Import
Sell Oil          Buy Airbus

   Invisible Trade Account
Export             Import
Examples


            Balance of Payments


Current Account             Capital Account
 Visible Trade Account

Export           Import


  Invisible Trade Account
Export            Import

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The balance of payments

  • 1. THE BALANCE OF PAYMENTS CURRENT AND CAPITAL ACCOUNT
  • 2. The Balance of Payments  What is balance of payment?  A record of the trade between a country and the rest of the world.  It consists of the current account and capital account  What is current account?  A record of visible trade account and invisible trade account  What is Capital account?  record the transfer of financial assets between a country and the rest of the world.
  • 3. Group Activity  Divide yourself into groups of three or four students.  Each group receives a sheet of paper which has examples of trade between Brunei and the rest of the world.  Each group needs to put each examples into the categories.  For example: Brunei buy Airbus from United States or Brunei sell oil to Japan.  Into which categories should you put this examples.
  • 4. Examples Balance of Payments Current Account Capital Account Visible Trade Account Export Import Sell Oil Buy Airbus Invisible Trade Account Export Import
  • 5. Examples Balance of Payments Current Account Capital Account Visible Trade Account Export Import Invisible Trade Account Export Import