International Trade and Economic Systems
Measuring International Trade
Balance of Payments
International trade is measured by the balance of payments, which records all economic transactions between a country and the rest of the world within a given period. The balance shows the changes in a country’s international currency reserves. It consists of two accounts:
- Current Account: Records payments for goods, services, and resource use.
- Capital Account: Records the movement of funds from Foreign Direct Investment (FDI), loans, and repayments.
E-Business: Models, Strategies, and Value Creation
Key Terminology
m-commerce, e-commerce, e-business
E-commerce describes the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the internet.
M-commerce is a subset of electronic commerce and refers to online activities similar to those in e-commerce, but it is limited to mobile telecommunication networks accessed through wireless hand-held devices.
What is E-business?
IBM Definition: The transformation of key business processes
Read MoreUnderstanding Financial Statements and Accounting Principles
Balance Sheet
Current Assets
- Liquidity
- Cash
- Marketable Securities
- Prepaid Expenses
Current Liabilities (Due Within One Year)
- Accounts Payable
- Salaries Payable
- Accrued Expenses
Long-Term Liabilities
- Notes Payable
- Leases
- Bonds Payable
Income Statement
Revenue: Recognized when earnings are substantially complete.
Expenditures (Historical Costs): All assets/liabilities are recorded at cost.
Conservatism
- Accountants strive to avoid overly optimistic financial statements.
- Conservatism guides accountants to choose the approach
E-Business Strategies and Models
Key Terminology
M-commerce, E-commerce, E-business
E-commerce describes the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the internet.
M-commerce is a subset of electronic commerce and refers to online activities similar to those in e-commerce, but it is limited to mobile telecommunication networks, which are accessed through wireless hand-held devices.
What is E-business?
IBM Definition
The transformation of key business
Read MoreIn-Depth Guide to Financial Statement Analysis Methods
Basic Analytical Methods
Users analyze a company’s financial statements using a variety of analytical methods. Three such methods are as follows:
1. Horizontal Analysis
Horizontal analysis is the percentage analysis of increases and decreases in related items in comparative financial statements. Each item on the most recent statement is compared with the related item on one or more earlier statements in terms of the following:
- Amount of increase or decrease
- Percent of increase or decrease
When comparing
Read MoreA Review of Early American Financial History
Allison’s Perspective on Early American Banking
First and Second Bank Failures
Allison’s view: Allison argues that the First and Second Banks of the United States were failures.
Counterarguments: While the banks ultimately failed to secure charter renewals, they played a crucial role in jumpstarting the economy, managing war debt, and stabilizing inflation. Their contributions suggest a more nuanced perspective on their success.
Key Financial Components
Understanding the six key financial components
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