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U.S. banking overseas

Explain how the topic you chose relates to the growth of U.S. banking overseas. Include information how your topic contributes to interdependence among economies and financial markets, and to global financial stability. Use at least three sources, 500 - 700 words

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Explain how the topic you chose relates to the growth of U.S. banking overseas. Include information how your topic contributes to interdependence among economies and financial markets, and to global financial stability. Use at least three sources, 500 - 700 words
The balance of payments is the accounting record of all transactions between the US and the rest of the world. These records are generated because of transactions. These relate to US exports, imports, and financial transfers. Essentially there is no deficit in the balance of payments(1). The reason is that balance of payments simply records payments and receipts of the residents of US. If all transactions are correctly included then the payment and receipts of each country must be equal. Any inequality in theory means that the once country is buying assets in another country. For example, if the US buys a ship from France and there are no other transactions then the French hold bank deposits of US dollars in a US bank account or hold an investment in the US. In other words the payments that the US make to get the ship from France is balanced by the US assets( investment or simply cash balance) held by the French. Now as the ...

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