International Finance MG760-144

Week 2 Homework Assignment

Instruction : Please provide all information based on following requirement.

1. Construct the balance of payment table for Japan for the year 2006 which is comparable
in format to Exhibit 3.1, page 66 (this page number from the old version, if you cannot
find it, please let me k now), to calculate the missing information data (Services; balance
current account; balance on financial account; Statistical discrepancies). Please show
your calculation clearly to support each number.

2. Please provide a paragraph to explain your result of your answer

3. Please show your clear calculation. You cannot just input the number only.

4. In order to earn the maximum points, please follow the instructions and submit on
time.
A summary of the Japanese Balance of Payments for 2000 (in $ billion)

Credits Debits
Current Account
(1) Exports 898.91
(1.1) Marchandise 615.81
(1.2) Services 117.30
(1.3) Factor income 165.80

(2) Imports -717.72

(2.1) Merchandise ??
(2.2) Services -135.56
(3.3) Factor income -47.65

(3) Unilateral transfer 6.18 -16.85

Balance on current account ??

[(1) + (2) + (3)]

Capital Account
(4) Direct investment -6.78 -50.17
(5) Portfolio investment 198.56 -71.04
(5.1) Equity securities 71.44 -25.04
(5.2) Debt securities 127.12 -46.00
(6) Other investment -86.67 -91.00

Balance on financial account ??

[(4) + (5) + (6)]
(7) Statistical discrepancies ??
Overall balance 31.98
Official Reserve Account -31.98