If you are a translation services worker that works in the field of international economics and finance, it makes sense to understand some basic terminology. This article continues our discussions on international business and was written by a Washington D.C. Translation Services worker who is retained by the World Bank, the United Nations and the U.S. Department of Commerce. In this writing the author discusses the international balance of payments, and the merchandise trade balance. The discussion on the current account and the capital account was written by a Houston Translation Services consultant.
The benefits of international commerce to the United States are revealed in the international balance of payments statistics. The international balance of payments is a summary statement of all international transactions between one nation-for example, the United States – and the rest of the world. International transactions include export and imports f goods, services, gifts, interest payments, and travel expenditures, as well as the flows of financial capital (purchases of stocks and bonds and real capital assets) across national boundaries. The bulk of the United States’ international transactions are exports and imports, which are summarized in the merchandise trade balance. The merchandise trade balance is the difference between the dollar value of goods (raw materials, agriculture and manufactured products) imported and exported. The difference between exports and imports was offset by other international transitions.
According to a well-known Houston Translation services worker, the current account is the record of all nation’s international transactions and other than capital flows and statistical discrepancies, including its merchandise trade, its investment income, its military transactions, its travel expenditures, its other services, and its remittances, pensions, and gifts. A current account deficit is the dollar amount by which a nation’s imports of goods and services, interest and dividend payments to foreigners, gifts to foreigners, travel expenditures abroad, and other remittances to foreign nations exceed its exports of goods and services, interest and dividend receipts from foreign nations, gifts from abroad, foreign travel expenditures in this nation and other remittances from abroad. A current account surplus is the dollar amount by which a nation’s exports of goods and services, interest and dividends receipts from foreigners, gifts from foreigners, foreign travel expenditures in this nation, and other receipts from abroad exceed the nation’s imports of goods and services, interest and dividend payments to foreigners, gifts to foreigners, treavel expenditures abroad and remittances to foreign nations.
Part of the income received from the sale of American goods abroad went into purchases of foreign stock and bonds and overseas investments by U.S. firms. Such investments are not included in current account statistics, because they are not imports. Instead, they are included in the nation’s capital account. The capital account is the record of U.S. investments abroad and foreign investments in the United States. A capital account surplus is the dollar amount by which foreign investments in the United States – that is, capital inflows – exceed U.S. investments abroad – that is capital outflows. A capital account deficit is the dollar amount by which U.S. investments abroad- that is, capital outflows – exceed foreign investments in the United States – that is capital inflows.