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Important of BOP

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Important of BOP

    • Posted by Deepali Gandhi 6 years, 10 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Gaurav Seth 6 years, 10 months ago

     

    1. The BoP statement provides a clear picture of the economic relations between different countries. It is an integral aspect of international financial management. 
    2.  The BoP statement provides information pertaining to the demand and supply of the country’s currency. The trade data shows a clear picture of whether the country’s currency is appreciating or depreciating in comparison with other countries.
    3. The country’s BoP determines its potential as a constructive economic partner. In addition, a country’s BoP indicates its position in international economic growth.
    4. By studying its BoP statement and its components closely, a country would be able to identify trends that may be beneficial or harmful to the economy and take appropriate measures.

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