BALANCE OF PAYMENTS
Balance Of Payments
The Balance of Payments (BOP) is a statement of all monetary transfers between a country and the rest of the world over a specific period, usually a year. It specifies all transactions made by individuals, businesses, and the government. With BOP, it is easier to track funding for economic growth.
BOP is crucial because
- It represents a country's economic health.
- International trade is impacted by changes in BOP
- Currency exchange rates can be influenced by BOP imbalances.
- When making investment decisions, foreign investors assess a country's BOP stability.
HR professionals can make informed choices about recruitment, remuneration, and general staffing strategies with BOP information.