Trade Tides & Turning Points: Mastering the Current Account
What you'll learn
- The students will learn the meaning of the Current Account and its role in a nation's economy.
- They will understand the components of the Current Account, including explorts and imports of goods and services, income from foreign investments.
- The students will learn about the factors influencing current account balance, such as economic growth, trade policies and exchange rates.
- The learners will examine the three possible states of the Current Account—balanced, surplus, and deficit—and their impact on economic stability.
Requirements
- Basic understanding of economic principles such as supply and demand, inflation and interest rates
Description
This comprehensive course delves into the intricacies of the Current Account, a vital component of a country’s Balance of Payments (BOP).
We will begin by defining the current account and its significance, which records all transactions related to the export and import of goods and services, income earned from foreign investments, and unilateral transfers. This course will equip you with the knowledge to interpret and analyze these flows, understanding their impact on a nation's economic well-being.
The course will delve into the components of the current account, including visible items (goods), invisible items (services), unilateral transfers, and income.
We will explore the calculation of the current account balance using the formula: Balance of visible trade + Balance of invisible trade + Net unilateral transfers plus Net income from abroad. We will break down each component, explaining what is meant by "balance" and "net" in each case, ensuring a clear understanding of the calculation process.
A crucial aspect of the course will be the analysis of Current Account surpluses and deficits. You will learn what these situations indicate about a nation's economic performance, its financial position, and its relationships with other countries.
The course will cover the three possible scenarios for the Current Account: balanced, surplus, and deficit and how various factors such as economic growth, trade policies, exchange rates, and international competitiveness influence these outcomes.
Who this course is for:
- Students and any individual who enjoys learning about various concepts of economics
Instructor
- 4.3 Instructor Rating
- 7,131 Reviews
- 211,785 Students
- 157 Courses
Parminder Singh has worked as a legal officer and branch manager with an insurance company owned by the government of India. Partner Puneet has also worked with a government department. Both of them took voluntary retirement and have started providing online education to students. They take pride in providing quality educational services and their aim is to ensure that the students are able to understand each and every question in an easy way. Their goal is to help the leaders of tomorrow learn to succeed today.