the Current account shows :: the money flow from all exports and imports of goods and services, income flows and non-market transfers for a period of one year
covers external transactions that are not reversible
where once commenced, these transactions cannot be undone.
Net goods
Net goods refers to :: the difference between what Australia receives for its exports and what it pays out for its imports of goods
Net services
Net services refers to :: services that are bought and sold without people receiving a “good”
Balance on goods and services
The balance on goods and services (BOGS) is :: the amount that is derived by adding Net goods (imports & exports) and Net services (impoorts & exports) together.
Net primary income
Net primary income refers to :: earnings on investments, that is, income that is earned as a return from a factor of production
When foreigners invest in Australia, income flows overseas in the form of:
Rent
Profits
Dividends
Interest
When Australians invest overseas, there is a flow of income back to Australia
Net secondary income
Net secondary income refers to :: non-market transfers, that is, income that is not earned through a factor of production.
