Explain the Concept of Balance of Payments and Describe Its

question 61

Essay

Explain the concept of balance of payments and describe its two major components.

---

Definitions:

Polycentric View

Refers to a perspective in international business where a company adapts its strategies and operations to the local conditions of the countries it operates in, often giving significant autonomy to each local branch.

Divestiture

The process of selling off subsidiary business interests or investments by a company to refocus its operations or to raise capital.

Core Competencies

Fundamental strengths or advantages of a business or organization that set it apart from competitors.

Turnaround

A process or strategy aimed at recovering a company from a period of poor performance and financial decline to achieve positive financial results and operational efficiency.