MAJOR ISSUES IN MICRO ECONOMICS
MAJOR ISSUES IN MICRO ECONOMICS
BALANCE OF PAYMENTS AND EXCHANGE RATE:
Balance of payments is the record of economics transactions of the resident of a country with the rest of the world during a period ,the aim to prepare such a record is to present an account of all receipts on account of goods exported, services rendered and capital received by the residents of a country and the payments made for goods imported ,services received and capital transferred to other countrires by residents of a country ,there may be deficit or surplus in balance of payments ,both create problems for an economy ,an important effect is that the transaction in balance of payment are influenced by the exchange rate .the exchange rate is the rate at which a country's currency is exchanged for foreign currencies ,the instability in exchange rate has been a major problem in recent years which has given rise to serious balance of payments problems ,during the last eight years ,indianb rupee has depreciated to a large extent in terms of us dollar giving rise to serious problems ,but during the last two years 1997 an 1998 ,curencies of many south -east asian countries and japan have rapidly depreciated in terms of us dollar ,this has created the situations of economics crissis which needs to be overcome ,both interrelated problems of balance of payments and instability of foreign exhange rate will be analysed in a separate part.
info education about microeconomic
by promoted santosh
BALANCE OF PAYMENTS AND EXCHANGE RATE:
Balance of payments is the record of economics transactions of the resident of a country with the rest of the world during a period ,the aim to prepare such a record is to present an account of all receipts on account of goods exported, services rendered and capital received by the residents of a country and the payments made for goods imported ,services received and capital transferred to other countrires by residents of a country ,there may be deficit or surplus in balance of payments ,both create problems for an economy ,an important effect is that the transaction in balance of payment are influenced by the exchange rate .the exchange rate is the rate at which a country's currency is exchanged for foreign currencies ,the instability in exchange rate has been a major problem in recent years which has given rise to serious balance of payments problems ,during the last eight years ,indianb rupee has depreciated to a large extent in terms of us dollar giving rise to serious problems ,but during the last two years 1997 an 1998 ,curencies of many south -east asian countries and japan have rapidly depreciated in terms of us dollar ,this has created the situations of economics crissis which needs to be overcome ,both interrelated problems of balance of payments and instability of foreign exhange rate will be analysed in a separate part.
info education about microeconomic
by promoted santosh
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