IB 200 DISCUSSION SECTION

Week 4: 14th/15th Feb 2013

Agenda
News Presentation
Balance of Payments FDI

News Presentations
Presenter & Topic today:
Jamie Brochtrup: Cultural thirst drives premium

tea boom in China

Balance of Payment
A U.S. based company provided IT consulting services abroad:
Current Account: Financial Account:

+75,000 - 75,000

A Japanese company sold cars in U.S.:

Current Account: Financial Account:

-100,000 +100,000

Balance of Current Account:

Balance of Financial Account:

-25,000 +25,000

Balance of Payment
Calculate both Current Account and Financial Account of BoP using following transactions: 1. Shoes import from Italy worth $50,000. 2. Transportation services provided to U.S. corporation under an annual contract of $30,000. 3. Computer export to Brazil worth $20,000. 4. IT services export to Indonesia worth $40,000.

Balance of Current Account: Balance of Financial Account:

FDI Activity
You are a junior member of your countrys Commission for Trade and Commerce Groups 1, 2, 3 The Trade Secretary has asked you to prepare a briefing on the pros and cons of attracting FDI into the country for a Congressional hearing. Groups 4, 5, 6 The Trade Secretary has asked you to prepare a briefing on the pros and cons of investing in the rising economies of the world.

Homework
Today No Homework due

Next week Foreign Exchange Worksheet Part I due in discussion Prepare your news presentation (if you are presenting) Presentation topics: Intercultural Communication & Foreign Exchange Market

Have a great weekend!