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Understanding Balance of Trade capital account and financial account in balance of payment

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Understanding Balance of Trade capital account and financial account in balance of payment Description

This comprehensive course delves into the crucial aspects of international finance, focusing on the Balance of Payments (BOP) and its key components. Gain a deep understanding of how a nation's economic transactions with the rest of the world are recorded and analyzed.

In this course, we will delve into the following critical areas:

1. Balance of Trade(BOT):

We begin by dissecting the Balance of Trade (BOT), exploring its three possible scenarios: surplus, deficit, and balance. You'll learn to differentiate between visible and invisible trade and understand their respective impacts on the economy.

2. Balance of Payments (BOP) vs. Balance of Trade(BOT):

We'll then introduce the Balance of Payments (BOP) as a broader concept encompassing the BOT and other financial flows. We'll clarify the distinction between BOP and BOT, examining their components, constructing the BOP equation, and interpreting surplus/deficit situations.

A key concept you'll grasp is why the BOT can be positive, negative, or zero, while the Balance of Payments must always be zero.  

3. Current Account vs. Balance of Trade:

The course further explores the Current Account, detailing its components and settlement mechanisms, and contrasting it with the Balance of Trade.

4. Capital Account:

We'll then transition to the Capital Account, explaining its role within the BOP and its focus on non-produced, non-financial assets and capital transfers. In addition, we will discuss the difference between Current Account and Capital Account.

5. Financial Account:

Finally, we'll examine the Financial Account, covering transactions involving financial assets and liabilities, including Foreign Direct Investment (FDI) and international borrowing and lending.

Throughout the course, we'll clearly differentiate between the Current, Capital, and Financial Accounts, clarifying their respective meanings and the types of transactions they pertain to.  

By the end of this course, you will have a solid grasp of the structure and significance of the Balance of Payments, enabling you to analyze international economic activity and its implications. This knowledge is invaluable for anyone interested in finance, economics, or international trade.

What You Need For This Course & Internship?

  • Access to Smart Phone / Computer
  • Good Internet Speed (Wifi/3G/4G)
  • Good Quality Earphones / Speakers
  • Basic Understanding of English
  • Dedication & Confidence to clear any exam

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Frequently Asked Questions

Q.Is the course 100% online? Does it require any offline classes too?

The following course is fully online, and hence there is no need for any physical classroom session. The lectures and assignments can be accessed anytime and anywhere through a smart web or mobile device.

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Anyone can choose a preferred course and start immediately without any delay.

Q.What are the course and session timings?

As this is a purely online course program, you can choose to learn at any time of the day and for as much time as you want. Though we follow a well-established structure and schedule, we recommend a routine for you as well. But it finally depends on you, as you have to learn.

Q.What will happen when my course is over?

If you have completed the course, you would be able to have lifetime access to it for future reference too.

Q.Can I download the notes and study material?

Yes, you can access and download the content of the course for the duration. And even have lifetime access to it for any further reference.

Q. What software/tools would be needed for the course and how can I get them?

All the software/tools that you need for the course would be shared with you during the training as and when you need them.

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No, only a soft copy of the certificate will be awarded, which can be downloaded and printed, if required.

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If you have enrolled, and are facing any technical problem then you can request a refund. But once the certificate has been generated, we shall not refund that.

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