Corporate and Global Finance
Assignment 2: International Balance of Payments
For most goods and services bought and sold in a marketplace, prices are determined by supply and demand. Exchange rates are no different. Absent government or central bank interference, the supply of and demand for currencies determine their prices.
Do the following to complete this assignment:
- Explain the international balance of payments (BOP) and the reason for its use.
- Examine how surpluses and deficits in the balance of payments (BOP) affect exchange rates.
- Explain the balance of payment (BOP) summary accounts and the process through which surpluses and deficits are tracked through their use.
- Provide an example by creating a balance of payment summary account sample, including a surplus or deficit.
Write a 2–3-page paper in Word format. Utilize at least three scholarly sources in your research. Make sure you write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; display accurate spelling, grammar, and punctuation. Use the APA format.
Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M4_A2.doc.
By Wednesday, June 1, 2016, deliver your assignment to the M4: Assignment 2 Dropbox.
Grading Criteria
| Grading Criteria | Proficient | Maximum Points |
Explain the international balance of payments and the reason for its use. | Explanation of the international balance of payments is clear, accurate, and complete. Explanation of its use is accurate and appropriate. | 8 |
Examine how surpluses and deficits in the balance of payments (BOP) affect exchange rates. | Examination is accurate, thorough, and specific. | 8 |
Explain the balance of payment summary accounts. | Explanation is clear, accurate, and complete. | 12 |
Explain how surpluses and deficits are tracked using balance of payment summary accounts. | Explanation is clear, accurate, and complete. | 12 |
Provide an example by creating a balance of payment summary account sample, including a surplus or deficit. | The example provided is appropriate and includes explanations. | 12 |
| Writing Standards | ||
Write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources (i.e. APA); and display accurate spelling, grammar, and punctuation. | Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation. | 8 |
| Total: | 60 |
