La Equidad De Genero

UNDERSTANDING THE BALANCE OF PAYMENTS

* What is the main difference between the Balance of Merchandise and the Balance of Services?
The balance of merchandise account refers to exports andimports of tangible goods and the balance of services account refers to exports and imports of invisible services such as tourism etc.

* Regarding the Capital Account is it better for a country aDirect Investment or a Portfolio Investment if so Why?
It’s better a Direct Investment because it helps to generate jobs.

* Is it good the Transfer of Funds from Mexican Citizens living in USAfor the Mexican Economy if so Why?
Yes it’s very good because when they send USA dollars to Mexico the money changes to pesos so more money comes into the country.

* Is it bad for the Mexicanpeople to have an external debt if so why?
Well yes it could be bad in a way because it makes Mexico not to be independent; a good example is that Mexico owes the USA a lot of money so it makes thecountry be dependent of the USA an eighty percent in general.

* What is the main reason for the lack of research and technology in Mexico?
Knowledge and Education are the main roots to developResearch and Technology, the education in Mexico is very low so without a high education Mexico can’t have great research and technology.

* What is the main reason for the lack of exports inMexico considering that we are in a global economy?
It’s the lack of knowledge, if people are not educated they won’t feel confident enough to innovate new things and risk to be active and create newbusinesses and companies in the country, if they don’t even try new things in their own country they won’t try to do things outside the country like exports.

* How the Capital Account isdivided?
Capital Account is divided in:
a) Direct Investment.
b) Portfolio Investment.
c) Unilateral transfers.
d) Transfers from other countries.
e) Government debt, Private debt,...