--%>
Assignment Help - homework help

Effects of foreigners portfolio investment on U.S BOP

Since early 1980s, foreign portfolio investors has purchased a considerable portion of the U.S. treasury bond issues.  Explain some short-term and long-term effects of the foreigners’ portfolio investment over the U.S. balance of payments.

E

Expert

Verified

Since foreigners acquire the U.S. Treasury bonds, U.S. BOP will increase in short run. However in long run, U.S. BOP can deteriorate since U.S. must pay interests and principals to the foreigners. If foreign funds are used productively and supports to the competitiveness of U.S. industries, Though, the U.S. BOP may increase in long run.

   Related Questions in Financial Accounting

  • Q : Money market Simply define and

    Simply define and illustrate the Money market?

    		•
  • Q : Explain Return on Equity or ROE Return

    Return on Equity (ROE): The amount of net income returned as a percentage of share-holders equity. The return on equity measures a corporation's profitability by revealing how greatly profit a company produces with the money share-holders encompass in

    		•
  • Q : French Association of Private Companies

    In the year 1995, working group of the French chief executive officers was formed by the Confederation of French Industry (CNPF) and the French Association of Private Companies (AFEP) for studying the structure of the French corporate governance. Group has reported th

    		•
  • Q : Article on maintenance policy for plant

    Write an article on the maintenance policy for overall costs and enhancing plant productivity.

    		•
  • Q : Conversion and competitive effects of

    Discuss the conversion and competitive effects of exchange rate changes on the firm’s operating cash flow.

    		•
  • Q : Quick establishment of the interest

    If cost advantage of the interest rate swaps might likely be arbitraged away within the competitive markets, what other explanations exists in order to describe quick establishment of interest rate swap market?

    		•
  • Q : Investment approach of Bill Miller

    Investment approach of Bill Miller: In comparison to both Warren Buffet and Peter Lynch, Miller is considered to be a slightly more aggressive investor.  Miller believed in playing big which meant that he used

    		•
  • Q : Who is a debtor Who is a debtor ?

    Who is a debtor? Briefly explain the term.

    		•
  • Q : Accounting Treatment of Expenditures

    Describe the term Accounting Treatment of Expenditures? Why it is used.

    		•
  • Q : Relationship-To Look for in each other

    What is Relationship and what are the traits that make any relationship happy and committed forever ?

    		•