International Financial Management: An Analytical Framework, 2nd Edition by Pearson

C h a p t e r

Chapter ObjeCtives

Introduction

However developed a country may be, it has to depend on other countries for something

or the other, as no country can produce all that is required for its people. The economies of

the world are necessarily interdependent, especially in this era of globalization. Specifically,

international trade flows and international capital flows have become the order of the day,

making international economic transactions the way of life. It is in this backdrop, a state-

ment of balance of international economic transactions is prepared by every country. Such a

statement is called the balance of payments, popularly ...