Balane of Payment

In: Business and Management

Submitted By 5561614
Words 692
Pages 3
Introduction:
In this term paper we will discuss the BOP and some issue related to this topic .first, we will discuss one part in the balance of payment of Kuwait ,which is the current account. Second we will find two relationship with the balance of payment which are 1) GDP and BOP,2) inflation and BOP .
Kuwait Current Account

The current account of Kuwait and other countries has three components: 1) the exports of goods and services minus the imports of goods and services; 2) the difference of incomes that countries pay to each other; and 3) the difference in transfers that countries make to each other. Current account deficits are reported with a minus sign and surpluses are reported with a plus sign.

Although the current account has several components, its biggest component is the trade balance: the difference between exports and imports of goods and services. More detail is provided in the Balance of Payments section of our global economy guide. The current account is part of the Balance of Payments.

A current account deficit means that the country needs to find financing for its imports. The foreign currencies it receives from selling products abroad are not enough to pay for the products it wants to buy from other countries. The needed amounts of foreign currencies can be obtained by, for example, borrowing. For instance, in the last several years the U.S. has been borrowing money from China in order to buy Chinese products.

This is not necessarily a problem. The current account deficit starts to be a problem if it exceeds 3-4 percent of GDP for many years. Over that time, the country accumulates a significant amount of foreign debt that eventually has to be repaid.

Kuwait enjoys a highly favorable payments position because of its huge trade surpluses. The Kuwaiti dinar is completely covered by the country's reserve fund, 50% of which must…...

Similar Documents

Mobile Payment

...Mobile payments in Asia Pacific i n f o r m at i o n , c o m m u n i c at i o n s & e nt e rta i n m e nt Mobile payments in Asia Pacific  Contents 2 Introduction from Sean Choi and David Collins 3 Introduction from John Ure and Peter Lovelock 4 Introduction 6 Business models and the m-payments value chain – Business models behind different transaction types – Emerging business models by country – Industry perspectives on m-payments 22 Case studies – Smart in the Philippines – Yeepay’s B2B approach – The growing reach of Octopus – Gaming and virtual money – A view from the bottom of the pyramid – mHITs in Australia 29 Regulations and standards 40 Risks and challenges 44 About KPMG © 2007 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 2 Mobile payments in Asia Pacific Introduction from Sean Choi and David Collins Seung Hwan (Sean) Choi This KPMG thought leadership report explores the development of the market for mobile payment systems in Asia Pacific. We believe the significance of this market cannot be overstated, as new technologies have the potential to play a key role in the expansion of commerce to an ever-wider segment of the world’s population. This is especially true in Asia Pacific. The expansion of commerce and the growing reach of...

Words: 18276 - Pages: 74

Royalty Payments

...A REPORT ON “ROYALTY Payments in industries” Submitted by: Niraj Kumar Agrawal NF121312 A report submitted in partial fulfillment of the requirements of PGP – FM Program of National Institute of Financial Management Sector – 48, Pali Road, Faridabad, Haryana – 121 001 Faculty Guide Dr. A. M. Sherry Acknowledgements I express my deep sense of gratitude to my Faculty guide Dr. A.M.Sherry. He is intellectual person and an expert in his field of taxation. He has got a very rich experience into field of Accounting & Taxation; He has done eminent in the field of taxation. He has been constant source of guidance and inspiration behind the ideas employed in the study. The project could only be completed through the little that I could borrow from the vast sea of his knowledge in this field. I have indeed no formal words to acknowledge the valuable guidance and co-operation extended by him during the project work. I am also thankful to my colleagues for helping me successfully conducting data mining. I extend my gratifications to Mr.Sumit Gupta for his support in collecting the data thru various sites. NIRAJ KUMAR AGRAWAL Roll No: NF121329 Course: PGP - FM Declaration I hereby declare that this project work entitled “Royalty payments by industries“ has been done by me during the academic year 2012-13 under the guidance of my faculty guide Dr. A.M.......

Words: 3437 - Pages: 14

Electronic Payments

... Institutionalizing Electronic Payment (e-payment) Systems in Ghana |Prince Kwame Senyo | | |University of Ghana | | |kpsenyo@gmail.com | | INTRODUCTION Technological advancement has caught up with us in the developing world and there is a need to rapidly change and focus on how best we can make optimum use of this opportunity. Payment for goods and services have been simplified and expedited by the introduction of new technological innovations. Statistics from the World Payment Report (2011) indicates there is a global increase in the volume of non-cash payments transactions by 5% in 2009 to 260 billion in 2011. The payment for goods and services in Ghana is mostly cash based and characterized by long queues and delays. A study by Abor (2004) pointed out that, before the introduction of electronic payment in Ghana customers will have to go to their banks to perform all transaction and with the long queues in most of our banks, payment became a problem. Heeks (2002) described information system in developing economies like Ghana as questionable and coupled with different challenges.......

Words: 1925 - Pages: 8

Payment Systems

...There are many complex processes involved in the health care organization’s payment system. There are numerous agencies such as State and Federal agencies a health care organization is accountable to. The guidelines the health care organization is required to follow are strict and if the health care organization does not follow the rules and regulations the governing agency can withhold payment. I will use the hospital as an example. In the United States hospitals are obligated to assist patients that arrive at their Emergency Room whether they have the financial funds to pay for their health care needs or not. For those that visit the Emergency Room that have health insurance this in itself is a complex issue. There are numerous health insurance organizations and many of them have their own individual set of rules and regulations the contracting agency is responsible for following. A few examples of the stipulations of insurance organizations are the different deductibles that have to be met; some pay for certain tests but not all tests; some pay for various procedures and some don’t, and some cover pregnancies and children and some don’t. When an individual has a governmental health insurance plan usually the plan is non-negotiable and covers certain conditions at certain cost levels. For instance a patient goes to the hospital with a diagnosis of a CVA the insurance organization will reimburse them for the CVA but they will not cover any other condition. This is commonly...

Words: 474 - Pages: 2

Balance of Payments

...Balance of Payments The balance of payments is the sum of all transaction that Australia has with the rest of the world. These figures are presented in two accounts- the current account and the capital and financial account. The capital and financial account are comprised of reversible transactions while the current account covers external transactions that are non- reversible. The balance of payments always balances but since the 1980s, Australia has persistently experienced a large Current Account Deficit (CAD). The balance of payments is based on a double entry system (ie credits and debits) of ledger accounts known as the current account and the capital and financial account. Current Account The current account records all transactions of a current nature involving money received (income) and money spent (expenditure) for M and X of g/s, income and transfers. These transactions are non-reversible (money has either been received or spent) ------------------------------------------------- BOGs- Balance on god and services ------------------------------------------------- -Shows aussie X/M patterns Goods * Exports (goods credits) and imports (goods debits) * X divided into rural and non rural * M classified as consumption, capital or intermediate * Tangibles Services * Exports (credits) and imports (debits) * Tourism, education, shipping, finance * Intangibles Net income * Income received from aussie owned......

Words: 454 - Pages: 2

E-Payments

...accompanied by efficiency. One of the major challenges encountered by the business community is means of payments especially if the operations involve international trade. For a business person with clients abroad or making use of inputs from oversea countries, the means of payment is really a pinching issue. However, in contemporary world which is characterized by rapid improvement of the standards of living, technology has identified this problem. Experts in this field have invented various means of payment available to the business community to make their commercial activities easier for rapid economic growth and prosperity of human kind. The consumers have also not been left out, since they are the targeted group by the manufacturers of different commodities. These payment methods make use of the internet and therefore can be used to reach all the parts of the world. They have been termed as online payment and they include the following:- (i) Masterpass It’s also called Masterpass wallet. It contains customer’s information about payment and shipping address. This is done in a very secure and convenient place. This facilitates purchase of commodities everywhere where this card is accepted. (ii) Paypal This means of payment has millions of active account s all over the world. Its major service include online payment and e-wallet. It contains stored paypal payment information as well as Paypal Express Checkout. It therefore ensures that customers with email......

Words: 549 - Pages: 3

Balance of Payment

...Balance of payment of Nepal The balance of payments account is a systematic record of all the transactions of a country’s inhabitants with the rest of the world over a given period of time. All transactions must be recorded somewhere. The IMF publishes a Balance Of Payments manual to standardize all balances of payments, and it contains the rules about which transactions are allowed. A favorable balance of payments usually implies a surplus which means that more funds are flowing in than leaving. Every transaction is recorded twice, once as a credit and once as a debit. A key point to remember about the balance of payments account is that the value of all the transactions must sum to zero. The balance of payments account consists of the following components: • Current Account • Capital Account Current Account The Current Account includes all transactions which give rise to or use up national income. The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of betel nut, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that Nepalese earn on assets held overseas, and also payments to foreign residents on assets held in Nepal. •...

Words: 2353 - Pages: 10

Electronic Payment

...ELECTRONIC PAYMENT SYSTEM Electronic Payments or e-payments refer to the technological breakthrough that enables us to perform financial transactions electronically. It can also be explain as a way of paying for a goods or services electronically, instead of using cash or a check, in person or by mail. TYPES OF ELECTRONIC PAYMENT SYSTEM Some of the types of electronic payments are the following; • Credit Card • Debit Card • Smart Card • E-Money • Electronic Fund Transfer (EFT) CREDIT CARD Credit card is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it, which is use to read credit card via card readers. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain period after which he/she can pay the credit card bill. It is usually credit card monthly payment cycle. Following are the actors in the credit card system. • The card holder - Customer • The merchant- seller of product who accept credit card payments. • The card issuer bank - card holder's bank • The acquirer bank - the merchant's bank • The card brand - for example , visa or MasterCard Credit card payment process STEP DESCRIPTION 1 Bank issues and activates a credit card to customer on his/her request. 2 Customer presents credit card information to merchant site or to merchant from whom he/she want to purchase a product/service. 3 Merchant validates customer's...

Words: 1093 - Pages: 5

Balance of Payment

...388954-60,632-3,873-30,579 | 39,907108,230-16,693------------34,126-17,504-20.9---15,807-5,450-3,041-253-7,062-14,649-9,430.1 | 49,508125,064-20,546------------37,390-17,619280.6---76,495-17,101-37,867-975-20,55336,338-9,631.6 | Balance of Payment for Malaysia from 2012-2014 (in RM Million) (Taken from website of Department of Statistics Malaysia Official Portal) The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. If a country has received money, this is known as a credit, and if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming. The table shows the BOP for Malaysia for years that are from 2012 to 2014. The balance of payment are divided into four categories. The first is current account. The current account is used to mark the inflow and outflow of goods and services into a country. Earnings on investments, both public and private, are also put......

Words: 1223 - Pages: 5

The Creativity of Payment

...(Caramenico & Goodman, 2013). On the other hand, commercial and trade also play a substantial role in the development of society. Moreover, the method of payment, which is a crucial part of business, has had a tremendous impact on individual’s lives. This essay will analyse the creativity of payments in two aspects which are motivation and imagination by examing the development of human society. This essay will also provide two real world examples to give a critical analysis of how creativity is applied in payments. The methods of payments are everywhere in people’s lives, such as shopping or transfer accounts. According to Babbush & Charles (2008), “payment is the performance of a duty or proise, the discharge of a debt or liability by the delivery of money or something else of value. ” The global growth increased broadly as expected to 3.75% in the third quarter of 2014, up from 3.25% in the second quarter (“IMF Global GDP Outlook”, 2014), averagely, keeping stable increase. Simultaneously, the finance industry developed rapidly and played an increasingly important role in the world economy activities. In addition, payment is a critical component of finance industry, so creativity of payments, specifically, is the creativity of finance activities. Motivation is the first aspect of creativity in the field of payments. According to Mackay(2007), “In one way, motivation is where someone causes someone else to act in a certain way. In another way, it appears that......

Words: 1718 - Pages: 7

Transfer Payments

...Transfer Payments Transfer payments are welfare payments made available through the social security system including the Jobseeker's' Allowance, Child Benefit, State Pension, Housing Benefit, Income Support and the Working Families Tax Credit. The main aim of transfer payments is to provide a basic floor of income or minimum standard of living for low income households. Current Government Spending This is spending on state-provided goods & services that are provided on a recurrent basis every week, month and year, for example salaries paid to people working in the NHS and resources for state education and defence. The NHS claims a sizeable proportion of total current spending – hardly surprising as it is the country's biggest employer with over one million people working within the organisation! Capital Spending Capital spending includes infrastructure spending such as new motorways and roads, hospitals, schools and prisons. How does government spending affect businesses? The level of government spending has many direct and indirect effects on all businesses. For firms selling goods and services to individual consumers and to other firms: Increased government spending may mean higher taxes Higher taxes reduce the ability of customers to purchase goods and services, which is likely to reduce consumer spending Consequently increased government spending is often at the expense of private sector spending and is therefore potentially harmful to some firms On the other......

Words: 283 - Pages: 2

Payment Types

...Ethical acceptability of the three types of payments: Commission, Facilitation payment or Bribe The payments done to anyone to affect or influence one’s action or decision is labelled under few names like commission, facilitation fee or bribe etc. There is insignificant difference between all these terms. The focus in this paper is on the ethical acceptability of these payments. The term ‘Bribe’ is generally used when money, gift or something of value is offered to any person to perform something which he is not authorised to do. This is considered as unethical and can also be considered as an offence under the law of corruption which makes it illegal in some countries. The other name ‘Facilitation Fee’ is given to the payment which has been done in various forms to someone who is obligated to perform a duty but offered to facilitate the permission or to hasten the process. Facilitation fee is considered as ethical or unethical based on the kind of work done or the advantage gained through it. Commission or service fee paid is considered acceptable and commonly practiced as it is pre-defined in most of the cases and remains same for all. There are no set rules or definitions to explain bribery. Local customs and laws often describe its boundary. Expressing moral approval or disapproval of payment done in any form is influenced by different social and cultural norms. For example, a facilitation fee is permissible to charge and pay in United States. It does not fall......

Words: 574 - Pages: 3

Facilitating Payment

...purpose of expediting or securing the performance of a routine government action of a minor nature. as soon as practicable afterwards, the person made a signed record of the payment. Consider carefully if a signed record is an admission of guilt under local or other law. unlike in bribery, I think ethical issues in facilitation payments outweigh the legal ones. 4. What does the future hold? The overwhelming international trend is against facilitation payments. At Austrade we [have a zero tolerance approach/we just say no/do everything to avoid them] and we like to think that our customers do the same. The poor ethical behaviour of one business can muddy the waters for all Australians doing business in another country. Together let’s gradually stamp out the corrosion of corruption. 5. Facilitating payments may help to create a culture of corruption inside the company, In almost all countries, facilitating payments are prohibited by law or public service regulations, so the company who make a facilitating payment will possibly be breaking the law. Also, facilitating payments may cause questionable business practices. This means that the company’s accounts will no longer give a true and fair view of the company’s business. And this may also encourage petty theft by employees, who see the payments made to public officials as an example to be followed. For example, if you need to get a particular license, and the person signing the paperwork may tell you that......

Words: 430 - Pages: 2

Balance of Payment

...Examine India’s balance of payments in the last two decades. What have been the trends in terms of merchandise trade, invisibles and capital flows? The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. If a country has received money, this is known as a credit, and, if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance. But in practice this is rarely the case and, thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming. DIVISION OF BALANCE OF PAYMENTS The BOP is divided into three main categories: the current account, the capital account and the financial account. Within these three categories are sub-divisions, each of which accounts for a different type of international monetary transaction.  The Current Account The current account is used to mark the inflow and outflow of goods and services into a country. Earnings on investments, both public and private, are also put into the current account.  Within the current account are credits......

Words: 3347 - Pages: 14

Payment Processing

...Optimal Payments Plc Audited Results for the year ended 31 December 2010 Mark Mayhew Joel Leonoff Keith Butcher Thursday, 31 March 2011 1 1 © Optimal Payments Plc. www.optimalpayments.com www.optimalpayments.com © Optimal Payments Plc. Agenda Introduction 2010 achievements 2010 financial performance Looking forward Conclusion Appendices A di Presentation team: Mark Mayhew CEO Mark Mayhew Mark Mayhew Keith Butcher Joel Leonoff Mark Mayhew Joel Leonoff CEO Keith Butcher CFO 2 © Optimal Payments Plc. www.optimalpayments.com Introduction 3 3 © Optimal Payments Plc. www.optimalpayments.com www.optimalpayments.com © Optimal Payments Plc. 2010 highlights Improved financial performance Business Transformation programme - simplification p p Newteller stored value platform operational Strengthened management team and Board Substantial progress on delivering Group 3 year strategy Transformational acquisition of Optimal Payments post year-end a s o a o a acqu s o o Op a ay e s pos yea e d 4 © Optimal Payments Plc. www.optimalpayments.com Optimal Payments Plc – who we are … NEOVIA Financial Plc + Optimal Payments Transaction closed 1 February 2011 NEOVIA renamed O ti d Optimal P l Payments Pl on 1 March 2011 t Plc M h Focused on providing payment solutions to online merchants and consumers through our “twin pillars” Straight Through Processing Stored Value Processing of transactions, either gateway or bureau......

Words: 3108 - Pages: 13

Perucas Naturais | Alexa e Casa Intelligente | Selena Gomez - Iheartradio Jingle Ball.