BOP & Foreign Exchange in Philippines

Entrepreneurial Skills

The initiative to utilize skills to sell products or services in the global market.

Trade Balance

The relationship between a nation's exports and imports, impacting its economic stability.

Currency Exchange

The process of converting one nation's currency to another for international trade.

Current Account

Records a nation's import and export payments for goods and services.

Capital Account

Reflects the acquisition or disposal of financial assets between nations.

Balance of Payments Deficit

Occurs when a nation spends more on imports than it earns from exports.

Exchange Rate

The value of one currency in terms of another, determined by the foreign exchange market.

Appreciation

When a currency's value increases relative to another, requiring more of the other currency for exchange.

Depreciation

When a currency's value decreases relative to another, requiring fewer units of the other currency for exchange.

Consumer Tastes

Influence currency value based on preferences for foreign or domestic goods.

Relative Inflation

Impact on currency value due to differences in inflation rates between nations.

Relative Incomes

Influence on currency value based on economic growth and rising incomes in a nation.

Speculators

Individuals or entities betting on currency value changes for financial gain.