Mind map
BOP Surplus
Map content
BOP Surplus
Current Account Surplus
- ↑ (X-M)
- Relative Growth Rates
- Trading partner's growth rate > Growth rate of domestic country
- Trading partner's RNY ↑ > Domestic country's RNY ↑
- ↑ Purchasing power
- ↑ Consumption (including M)
- Trading partner's M is domestic country's X
- ↑X > ↑M
- ↑ (X-M)
- ↑ (X-M)
- ↑X > ↑M
- Trading partner's M is domestic country's X
- ↑ Consumption (including M)
- ↑ Purchasing power
- Trading partner's RNY ↑ > Domestic country's RNY ↑
- Trading partner's growth rate > Growth rate of domestic country
- ↑ Competitiveness of Domestic G&S
- ↑ Price competitiveness
- Relative Inflation Rates
- Lower inflation rates than rest of the world
- X are relatively cheaper/ M are relatively more expensive
- ↑ X / ↓ M as consumers switch from foreign G&S to domestic G&S
- ↑ (X-M)
- ↑ (X-M)
- ↑ X / ↓ M as consumers switch from foreign G&S to domestic G&S
- X are relatively cheaper/ M are relatively more expensive
- Lower inflation rates than rest of the world
- Relative Inflation Rates
- ↑ Non-price competitiveness
- ↑ Quality of domestic G&S
- ↑ X / ↓ M as consumers switch from foreign G&S to domestic G&S
- ↑ (X-M)
- ↑ (X-M)
- ↑ X / ↓ M as consumers switch from foreign G&S to domestic G&S
- ↑ Quality of domestic G&S
- ↑ Price competitiveness
- Government Policies
- Exchange Rate Depreciation
- Domestic currency now worth less in terms of foreign currency
- X becomes relatively cheaper in terms of foreign currency/ M becomes relatively more expensive in domestic currency
- ↑ X / ↓ M as consumers switch from foreign G&S to domestic G&S
- ↑ (X-M)
- ↑ (X-M)
- ↑ X / ↓ M as consumers switch from foreign G&S to domestic G&S
- X becomes relatively cheaper in terms of foreign currency/ M becomes relatively more expensive in domestic currency
- Domestic currency now worth less in terms of foreign currency
- Contractionary Policies (CMP & CFP)
- ↓ AD (reverse multiplier)
- ↓ RNY
- ↓ Purchasing power
- ↓ Consumption (including M)
- ↓ M
- ↑ (X-M)
- ↑ (X-M)
- ↓ M
- ↓ Consumption (including M)
- ↓ Purchasing power
- ↓ RNY
- ↓ AD (reverse multiplier)
- Protectionism
- Tariff
- ↑ Price of M
- Consumers less willing and able to buy M
- Switch from M to domestic substitutes
- ↓ M
- ↑ (X-M)
- ↑ (X-M)
- ↓ M
- Switch from M to domestic substitutes
- Consumers less willing and able to buy M
- ↑ Price of M
- Quota
- ↓ Quantity of M
- ↓ M
- ↑ (X-M)
- ↑ (X-M)
- ↓ M
- ↓ Quantity of M
- Subsidies
- ↓ Unit cost of production
- ↓ Price of X
- ↑ X
- ↑ (X-M)
- Improve BOT
- Improve Current Account
- Improve BOT
- ↑ (X-M)
- ↑ X
- ↓ Price of X
- ↓ Unit cost of production
- Tariff
- Exchange Rate Depreciation
- Relative Growth Rates
- ↑ (X-M)
Capital and Financial Account Surplus
- ↑ FDI
- Changes in Exchange Rate
- Appreciation
- Domestic currency now worth more in terms of foreign currency
- ↑ Profits when repatriated back to home country
- ↑ Expected Rate of Return
- ↑ FDI
- ↑ FDI
- ↑ Expected Rate of Return
- ↑ Profits when repatriated back to home country
- Domestic currency now worth more in terms of foreign currency
- Depreciation
- Domestic currency now worth less in terms of foreign currency
- ↓ Unit cost of production
- ↑ Profits
- ↑ Expected Rate of Return
- ↑ FDI
- ↑ FDI
- ↑ Expected Rate of Return
- ↑ Profits
- ↓ Unit cost of production
- Domestic currency now worth less in terms of foreign currency
- Appreciation
- Develop Areas of Comparative Advantage
- ↑ Productivity, ↓ Unit cost of production
- ↑ Expected Rate of Return
- ↑ FDI
- ↑ FDI
- ↑ Expected Rate of Return
- ↑ Productivity, ↓ Unit cost of production
- Low and Stable Inflation Rate
- Sign of booming economy, ↑ certainty of streams of revenue
- ↑ Expected Rate of Return
- ↑ FDI
- ↑ FDI
- ↑ Expected Rate of Return
- Sign of booming economy, ↑ certainty of streams of revenue
- Changes in Exchange Rate
- ↑ Hot Money inflow/ ↓ Hot Money Outflow
- Relative Interest Rates
- Higher interest rate than rest of the world
- ↑ Expected Rate of Return
- ↑ Hot Money inflow/ ↓ Hot Money Outflow
- ↑ Hot Money inflow/ ↓ Hot Money Outflow
- ↑ Expected Rate of Return
- Higher interest rate than rest of the world
- Exchange Rate Appreciation
- Domestic currency now worth more in terms of foreign currency
- ↑ Profits when repatriated back to home country
- ↑ Expected Rate of Return
- ↑ Hot Money inflow/ ↓ Hot Money Outflow
- Improve Capital and Financial Account
- ↑ Hot Money inflow/ ↓ Hot Money Outflow
- ↑ Expected Rate of Return
- ↑ Profits when repatriated back to home country
- Domestic currency now worth more in terms of foreign currency
- Relative Interest Rates
- ↑ FDI
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- Description
- Mind Map on BOP Surplus, created by 17Y6C32 KOH HUI WEN on 11/12/2017.
- Created by
- 17Y6C32 KOH HUI WEN
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