Balance of Payment Group Project

[Please complete the group project in excel file and submit the completed project soft copy during class
on October 9 Monday. Late submission will earn 0 points. Please complete the whole project in excel
spreadsheet. Please do not email the project or do not bring a printed copy.

Total Points: 10 (2.5 * 4)

Please collect annual balance of payment account information for any 2 countries of your choice for the
last 25 years. Out of the 2 countries, one (but not both) can be either of USA, UK, Germany, Japan, or
China. Carefully choose the countries as you will work with the same countries for subsequent projects
as well. Please do the following:

1. Create a table showing the following for the both countries

o Trade Balance (BOT)
o Balance on the Current Account (BCA)
o Balance on the Capital Account (BKA)
o Balance on the reserve Account (BRA)
2. Create a figure to show the trends of BCA and BKA for both the countries overtime
3. Create a figure to show the trends of BOT and BRA for both the countries overtime
4. Explain whether a positive (negative) BOT causes a negative (positive) BCA for each of the 2
countries, or vice versa? State the arguments in favor of your position.

Project Hints:

Balance of payments data are available in IMF International Financial Statistics

To create the table, please refer to Exhibit 3.5 in your textbook
To create the figures, please refer to Exhibit 3.6 in your textbook