INTERNATIONAL FLOW OF

FUNDS

GLOBALIZATION & ENTREPRENEURSHIP

CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator
Balance of
Payment

The measurement of different forms of

international economic transactions
between the residents of a country and
foreign residents.

GLOBALIZATION & ENTREPRENEURSHIP

CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator
 MAJOR COMPONENTS
Imports Exports

CURRENT ACCOUNT CAPITAL/ FINANCIAL

ACCOUNT
GLOBALIZATION & ENTREPRENEURSHIP
CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator
Debit Money Credit

Credit Money Debit

GLOBALIZATION & ENTREPRENEURSHIP

CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator
 THE Current Account
Monitors the flow of funds from goods and
Services between countries.

Trade Surplus
Import Export

Trade Deficit

GLOBALIZATION & ENTREPRENEURSHIP

CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator
 THE Current Account
• Includes all imports and exports of goods and
services.
• Includes unilateral transfers of foreign aid.
• If the debits exceed the credits, then a country
is running a trade deficit.
• If the credits exceed the debits, then a country
is running a trade surplus

GLOBALIZATION & ENTREPRENEURSHIP

CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator
 Trade & Services Balance

-
+
EXPORTS IMPORTS

GLOBALIZATION & ENTREPRENEURSHIP

CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator
 CURRENT ACCOUNT – PHILIPPINES
2016-2018
2000

1000

0 1st 2nd 3rd 4th

Current Account

-1000

-2000

-3000

-4000

-5000

-6000

-7000

-8000 GLOBALIZATION & ENTREPRENEURSHIP

CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator
2016 2017 2018
FINANCIAL ACCOUNT

Domestic Foreign Ownership

GLOBALIZATION & ENTREPRENEURSHIP

CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator
 Capital Account

-
+
Earnings from Payments are sent
investment overseas

GLOBALIZATION & ENTREPRENEURSHIP

CLIENT WILLIAM M. MALINAO, PhD, LPT
Course Facilitator