does unilateral transfer and current transfer mean the same?
Answers
Answer:
Unilateral transfers sent by governments are included in the current account of a nation's balance of payments. They are distinct from trade transactions, which are bilateral in that both parties receive something.
Current transfers cover transactions in which goods, services or financial items are transferred between units without something of economic value being received in return. The transfers may occur either domestically or across borders.
Answer:
Current transfers are one-sided transaction transfers in which a resident entity in one nation provides an economic value to a non-resident entity in another nation.
A one-way transfer of money, goods, or services from one party to another is known as a unilateral transfer.
Explanation:
A one-way transfer of money, goods, or services from one party to another is known as a unilateral transfer.
- Sending dollars, products, or services to a recipient who does not return anything in kind is known as a unilateral transfer.
- In governments directing foreign aid, unilateral transfers are widespread, especially from developed to developing ones.
- Unilateral aid initiatives appear to be intended to promote economic growth, development, and democracy. In actuality, many are awarded to well-connected corporations as diplomatic tools or lucrative contracts.
Current transfers are one-sided transaction transfers in which a resident entity in one nation provides an economic value to a non-resident entity in another nation.
- There is no exchange of goods or services between the two parties participating in the transaction.
- General government transfers, which are done between governments of two nations, and other sector transfers, such as those involving worker remittances or premiums linked with non-life insurances, are the two primary forms of current transfers.
- Because of their one-sided nature, accounting for current transfers is not always straightforward in balance of payments.
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