INTERNATIONAL INVESTMENT ANALYSIS

International Investment Analysis-A thorough analysis of the U.S



International Investment Analysis-a thorough analysis of the U.S

Introduction

The balance of payments registers the international financial position of a country, using a double-entry bookkeeping approach to tabulate the market value of the transactions in goods, services, and financial assets between the country's residents and the residents of the rest of the world. Like gross domestic product (GDP), the balance of payments encompasses transactions in goods and services produced during the year, but, unlike the GDP, the balance also encompasses transactions in assets. In addition to categorizing international transactions as debits or credits, the balance of payments separates private transactions in goods and services into the current account and transactions in assets into the capital account. Official government transactions, undertaken to affect the exchange rate, are typically separated from private transactions in balance of payments accounting.

Discussion and Analysis

The US has long enjoyed its status as a superpower, and the country exerts immense economic and political influence over national and global policymaking. The extent of this influence became evident when the US was able to defy the UN, declaring a war on terror which was spearheaded by the invasions of Afghanistan and Iraq in 2001 and 2003 respectively. However, the drawn-out nature of these conflicts, combined with rising unemployment and corresponding social tensions, have made the US population increasingly critical of the government's international policies.

On a number of occasions its actions have been seen as intrusive in the domestic affairs of other countries and, as a result, its global credibility and standing has been steadily eroded. At the same time, anti-US sentiment has further fueled Islamic terrorist groups. The US is among the top terrorist targets in the world, and the threat of attack is ever present. President Barack Obama has attempted ...