Computing overall balance and its significance
Discuss how to compute overall balance and explain some of its significance.
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Overall BOP is estimated through computing the cumulative balance of payments involving the capital account, current account, and the statistical discrepancies. Overall BOP is quite considerable as it indicates international payment of the country gap which should be financed through the official reserve transactions of the government.
Source: O'Conner, G. C., T.R. Willemain, and J. MacLachlau, 1996. "The value of competition among agencies in developing ad compaigns: Revisiting Gross's model." Journal of Advertising 25:51-63. Modeling Cases
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