Question
A statistical statement in International business that shows at a point the value of financial assets of residents of an economy that are claims on non-residents or are gold bullion held as reserve assets and the liabilities of residents of an economy to non-residents is known as
The correct answer is
The Internation Investment Position (IIP)
International Investment Position (IIP) Explained
The statistical statement described in the question is the International Investment Position (IIP). It represents a snapshot at a specific point in time, showing the value of an economy's external financial assets and liabilities involving non-residents.
Key Components of IIP
- External Financial Assets: These include assets owned by residents (individuals, companies, government) that are claims on non-residents. This also covers reserve assets like gold bullion held by the central bank.
- External Liabilities: These represent the claims non-residents have on the domestic economy's residents.
- Point in Time: Unlike flow measures (like balance of payments), the IIP is a stock measure, like a balance sheet, capturing the position on a particular date (e.g., end of a quarter or year).
Why Other Options Are Incorrect
- Currency Composition Table: Focuses only on the currencies making up assets/liabilities, not the overall position.
- Special Purpose Entities (SPEs): These are specific legal entities used in financial structuring, not a statistical measure of national financial position.
- Cross Border Flows: This term typically refers to the *movement* of assets, liabilities, and income over a *period*, contrasting with the IIP's focus on the stock position at a single point in time.
Therefore, the definition precisely matches the International Investment Position (IIP).
Was this answer helpful?
Important Questions from Business Environment and International Business
G20 Summit (2023) Proposed which Economic corridor including shipping and rail lines?
- According to eclectic theory of foreign direct investment, foreign direct investment will occur under which of the following conditions when they are to be uniquely combined?
A. Ownership
B. Location
C. Market power
D. Internationalization
E. Vertical integration
Choose the most appropriate answer from the options given below : - For Forigen Direct Investment, it is argued that a location in question attracts FDI because it combines the unique advantage of which of the following conditions?
A. Internalisation Advantage
B. First Mover Advantage
C. Knowledge Advantage
D. Ownership Advantage
E. Location Advantage
Choose the correct answer from the options given below: - Which of the following are the reasons for substitution between domestic and MNC goods?
A. Increased knowledge of foreign products due to international information revolution
B. No need to conduct advertising campaigns
C. Transportation costs having fallen to very low levels for most products
D. Restricted international travel
E. Tastes are consistent at the global level
Choose the correct answer from the options given below: - Match List I with List II
List I List II Nature of Business Activity FDI Permitted under Automatic Route A. Trading in Transferable Development Rights (TDR) I. 49% B. Multi-Brand Retail Trading II. Prohibited C. Satellite (Establishment and Operations) III. 51% D. Petroleum Refining (by PSUs) IV. 100%
Chose the correct answer from the option given below:
Need Expert Advice?
