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Managing in a global economy by john marthinsen babson MBA chapter 14

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Copyright© 2008 South-Western, a part of Cengage Learning.. Copyright© 2008 South-Western, a part of Cengage Learning.. Copyright© 2008 South-Western, a part of Cengage Learning.. Copyri

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Balance of Payments Fundamentals

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Balance of Payments*

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Monetary Base

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Effect of Federal Reserve Intervention in the Euro–Dollar Foreign Exchange Market to Raise the Dollar’s Value

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Sources and Uses of

Funds in the Balance

of Payments

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Major Balance of Payments Measures

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Components of Gross National Product

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Source: Federal Reserve Bank of St Louis, Economic Data—FRED II, ‘‘U.S Trade and International

Transactions,’’ http://research.stlouisfed.org/fred2/categories/13 (accessed January 27, 2006).

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Mexican Balance

of Payments,

1992–1996

Source: IMF, International Financial Statistics Online, http://ifs.apdi.net/imf/about.asp (accessed January

23, 2006).

*f.o.b means ‘‘free on board.’’ It is the value of the exported goods at the border of the exporting country For traded goods, it excludes freight costs and insurance beyond the border of the exporting country.

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Source: IMF, International Financial Statistics Online, http://ifs.apdi.net/imf/about.asp (accessed January

23, 2006).

*Source: World Bank, ‘‘World Development Indicators,’’ http://web.worldbank.org/WBSITE/EXTERNAL/

DATASTATISTICS/0,,contentMDK:20535285~menuPK:232599~pagePK:64133150~piPK:64133175~the

SitePK:239419,00.html (accessed February 6, 2006).

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Balance on Goods and Services

Source: IMF, International Financial Statistics Online, http://ifs.apdi.net/imf/about.asp (accessed

September 27, 2006).

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Components of GDP: Income Perspective

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