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international investment position data/ GDP data

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Go to the BEA website (http://www.bea.gov) and download the annual data for the United States' end-of-year international investment position (IIP) from 1976 to the present. Next, download the annual data for the United States' nominal Gross Domestic Product (GDP), also from 1976 to the present. Compare the annual ratio of the IIP to nominal GDP starting in 1976, then graph the data. The United States has run a current account deficits almost every year since the mid-1980s. In the paper,

Explain the trends in the data collected from the BEA website. .
As a percent of the nominal GDP, compare the current account deficit with the growth rate of the nominal GDP. Using this information, examine the annual current account data from the BEA website.
Explain if a country can have a current account deficit at the same time as having a surplus in its balance of payments. Use the data that you have gathered.

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Solution Preview

In accordance with BrainMass standards this is not a hand in ready paper but is only background help.

Please see the attachments.
Step 1
The data collected from the BEA website is the annual Nominal GDP, annual Investment Position, and the rate of Growth of GDP. The data is shown on the excel sheet. The data has been collected for the period 1976 till today. The ratio of IIP to nominal GDP has also been calculated. The first graph shows IIP/GDP, the second graph shows Nominal GDP, the third graph shows International Investment Position, and the fourth graph shows the annual growth of GDP. The graphs are also for the period 1976 to 2015.

Step 2
The international investment position is a financial statement setting out the value and composition of United States' external assets and liabilities. A positive figure indicates that United States is a creditor nation while a negative value indicates that it is a debtor nation. In 1976 the international investment position was $80,539 million. It increased to a peak of $238,366 m in 1982 before it declined and for the first time in 1989 became negative. It became -$33,718 m in 1989. The negative figure increased till it became -$7356,784 m ...

Solution Summary

This solution explains and analyzes data from BEA website. The sources used are also included in the solution.

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