Unit 7: Balance of Payments pt. 3 (4/14)

Balance of Trade = (goods and services of exports) - (goods and services of imports)

Trade Deficit: Imports > Exports

Trade Surplus: Exports > Imports

= Goods Exports + Good Imports

Current Account = Balance of Trade + Net Investment + Net Transfers

Capital Account = foreign purchases of U.S. assets + U.S. purchases of assets abroad

Official Reserves = Current Account + Capital Account 

Goods & Services = Goods Imports + Service Imports