good
services investment
use of money (debit)
sourse of money (credit)
BoP balance should be zero
fundamental of BOP accounting
current account ( cán cân vãng lai) primary income labor income ( salary)
receipt lãi, l? i nhu? n
secondary income gift, grants/ aid
>10%
BOP capital account ( cán cân v? n) direct investment DI control over asset and profit ( ex: buy at least 10% stock)
bond
bond
portfolio investment PI no control asset, motivation is return
stock (<10%)
financial account ( cán cân tài chính) deposit
Other investment OI not considered DI and PI
loans
trade credit
debit
decrease foreign liabilities ( tài s? n n? gi? m)
ways to balance
decrease foreign assets
credit
increase foreign liabilities