Trade barriers and similar restrictions, or changing the international value of its currency

Conclusions:

The balance of payments records all of the international trade and financial transactions

Which take place between a given nation and the rest of the world. The trade balance compares

Merchandise exports and imports. The balance on goods and services compares exports and imports

Of both goods and services. The current account balance considers not only goods and services

Transactions, but also net investment income and net transfers.

A deficit on the current account will be largely offset by a surplus on the capital account.

Conversely, a surplus on the current account will be largely offset by a deficit on the capital account.

A balance of payments deficit occurs when the sum of the current and capital accounts is in

Deficit. A payments deficit is financed by drawing down official reserves. A balance of payments

Surplus occurs when the sum of the current and capital accounts is in surplus. A payments surplus

Results in an increase in official reserves. The desirability of a balance of payments deficit or surplus

Depends upon its causes and its persistence over time.

Terminological Vocabulary to Text 14.4. Try to memorize it

Balance of payments — платежный баланс

Current accounts — счет текущих операций (текущие операции)