Balance of Payments and Foreign Exchange Discussion

Select a country of your choice (other than Saudi Arabia) and observe the last balance of payments issued by that country. Does the country run a current account deficit or surplus? What are the driving factors for the deficit or surplus? What policies should the government implement to improve the external position of the country?

• Embed course material concepts, principles, and theories, which require supporting citations along with at least one scholarly, peer-reviewed reference in supporting your answer unless the discussion calls for more. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.
• Use Saudi Electronic University academic writing standards and APA style guidelines.
• You are required to reply to at least two peer discussion question post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.
• For Your Success
• This module continues the investigation of the economics of international flows of the factors of production. The flows of capital across borders are discussed in relation to the balance of payments. Finally, international markets for foreign exchange are reviewed. Consider this question as you progress through the module: What do you think about the U.S. indebtedness and its long-term effects?Be sure to participate in this week’s Discussion Board. Additionally, your next quiz encompassing material from Modules 9 and 10, which is a graded exercise for this module, must be completed by the end of this week.Learning Outcomes
  1. Evaluate the implications of balance of payments, surpluses, and deficits on national economies.
  2. Critically evaluate the implications of surplus, balance, and deficit in a current account and capital and financial accounts

  ReadingsRequired:Chapter 10 in International EconomicsChapter 11 in International EconomicsIbarra, R. & Tellez-Leon, I. (2020). Are all types of capital flows driven by the same factors? Evidence from Mexico. Empirical Economics, 59(1), 461-502. Retrieved from https://doi-org.sdl.idm.oclc.org/10.1007/s00181-019-01624-5Recommended: Chapter 10 PowerPoint slides Chapter 10 PowerPoint slides – Alternative Formats – International Economics Chapter 11 PowerPoint slides Chapter 11 PowerPoint slides – Alternative Formats – International EconomicsHarvey, J. (2019). Exchange rates and the balance of payments: reconciling an inconsistency in Post Keynesian Theory. Journal of Post Keynesian Economics, 42(3), 390-415.