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Business Studies & Economics..Post your doubts here!

Kareem Gamal Omar

Kareem Gamal Omar

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I NEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEED SOME NOOOOOOOOOOTES PLEASE ANYONE HELP ME !!!!!!!!!!!!!!!!!! IAM FREAKING OUT TOO I WANT NOOOTES IAM DIEING HERE !!!!!!!
 
shefali

shefali

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teddy cookie 94 said:
could you please help me with current accound deficit and surplus and everything related to that ? omg i am freaking out
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see basically the current account The difference between a nation's total exports of goods, services and transfers ( investments made at home by foreigners and by the ppl of the country abroad) and incomes (this means the incomes earned by foreigners and incomes earned by people of our country working abroad), and its total imports of them. Current account balance calculations exclude transactions in financial assets and liabilities.

Now all you need to know is that
  1. EXPORTS BRING MONEY IN HENCE IT IS REVENUE (whether it is goods we sell abroad, services we sell abroad, income earned by our country ppl will be added since it brings in money and investment made in the country is counted as it brings in money)
  2. IMPORTS USE MONEY HENCE IT IS EXPENDITURE (goods we buy from abroad, services we buy from abroad, incomes given to foreigners living in our country and investment made by our people in other countries counts as expenditure)
Now a basic definition of deficit is lack so its obvious that IMPORTS EXPENDITURE EXCEEDS REVENUE FROM EXPORTS
surplus means extra hence REVENUE FROM EXPORTS EXCEED IMPORTS EXPENDITURE

To tackle question just remember and ask yourself whether it brings money in the country or out of the country..also which text book are you using? maybe i cn tell u which chapters to revise
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shefali

shefali

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capital employed is basically money and machinery or buildings required for a business to function
formula: TOTAL ASSETS-CURRENT LIABILITIES
 
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