The balance of payments (BoP) is an account statement which holds the summation of all international transactions a country has had with other nations. It gives an idea about the country’s performance in trade, in attracting foreign capital and the impact on the foreign exchange reserve of a country. It also tells us whether the country saves enough […]
Trade interconnectedness: The number of systemically important trading nations increased over time, their trade links have also multiplied. It is due to the increase in supply chain system facilitated by lower tariffs and a decline in transportation and communication costs. The increase in international trade is due to liberalization and specialization. The multilateral and bilateral liberalization has led to […]
Trade has not only influenced the monetary and financing system of a country but even alliances among nations. No nation can form its monetary policies independent of other nations. International finance is the branch of economics that broadly studies the monetary and macroeconomic relationship between nations. It studies capital flows among the nations, exchange rate fluctuations […]