The balance of payments (BOP), also known as balance of international payments, summarizes all transactions that a country’s individuals, companies, and government bodies complete with individuals, companies, and government bodies outside the country. These transactions consist of imports and exports of goods, services, and capital, as well as transfer payments, such as foreign aid and remittances. A country’s balance of payments and its net international investment position together constitute its international accounts. The balance of payments divides transactions in two accounts: the current account and the capital account. Sometimes the capital account is called the financial account, with a separate, usually very small, capital account listed separately. The current account includes transactions in goods, services, investment income, and current transfers. The capital account, broadly defined, includes transactions in financial instruments and central bank reserves. Narrowly defined, it includes only transactions in financial instruments. The current account is included in calculations of national output, while the capital account is not.
• Look into the data of Afghanistan from Trading Economics/UNCTAD?WITS/UNCOMTRADE/WORLD BANK) and prepare the BOP sheet of Afghanistan from 2015-2019? b)Discuss these arguments in light of political economy of trade policy, externalities and development?
• Articulate arguments for free trade that go beyond the conventional gains from trade.
• Explain how international negotiations and agreements have promoted world trade in Afghanistan context.
• Discuss the special issues raised by preferential trade agreements signed by Afghanistan in SAFTA.
