Investments overseas by UK residents -65.9

Investments in the UK by overseas residents +37.3

Other capital transactions +29.0

Balancing item +2.4

Vocabulary Notes to Text 14.7.1.1

To tabulate — сводить в таблицу

The credit and debit transactions — кредитно-дебетовые операции

To collate — сравнивать

Visible trade — видимая торговля

Overseas assets — зарубежные активы

14.7.1.2. Read the text “The Factors Reflecting a Country’s Balance of Payments.” 2004 and

compare it with the USA balance of payments in 1995 with that given in the main text “A Nation’s

Balance of Payments.” Make the conclusions.

The Factors Reflecting a Country’s Balance o f Payments

The balance of payments (Table 14.3) reflects many factors — first, the state of aggregate demand

At home and the state of demand abroad; and secondly the exchange rate and the relative

Costs of domestic production. Governments can only really influence the balance by changing

Demand, or by changing the exchange rate. In the past it was felt important to avoid a deficit which

Implied a net demand for foreign currency. In the fixed exchange rates of the time, the central

Authority had to finance an imbalance by selling gold or foreign exchange for its currency. This was

Not sustainable for ever.

Table 14.3. USA balance of payments

Current Account $ billion

Export of goods +574.9