BOP Balance Simulator

Financial Account Foreign Asset Purchase (+ Credit) Foreign firm builds factory in domestic land. Account Click a transaction to see how double-entry bookkeeping keeps the Balance of Payments in equilibrium. BOP Balance Simulator lets you explore this hands-on instead of only reading about it.

The final unit expands the focus to the global stage. It explains how transactions between countries are recorded in the balance of payments and how the foreign exchange market determines the value of national currencie… It focuses on Balance of Payments, Current Account, Capital and Financial Account, Foreign Exchange Market (FOREX), Exchange Rate Determination, Net Exports and Capital Flows from the “Unit 6: Open Economy: International Trade and Finance” section.

The “Reset Simulation” button run actions or reset the demo. Every change updates the visualization in real time, so you can see exactly how each variable affects the outcome.

AP Macroeconomics is a college-level course that explores the principles of economics that apply to an economic system as a whole. Students use graphs, charts, and data to analyze, describe, and explain economic concept… This demo is the interactive piece for the “Unit 6: Open Economy: International Trade and Finance” section. Open the full AP Macroeconomics course wiki at https://www.getlykke.com/explore/public/ap-macroeconomics-e215a86d-3bf6-4ee4-9294-4cc03ac2d317 for notes, flashcards, quizzes and the other demos.

You'll build intuition for Balance of Payments, Current Account, Capital and Financial Account, Foreign Exchange Market (FOREX), Exchange Rate Determination, Net Exports and Capital Flows — and, crucially, see how they behave when you change the inputs, which is hard to get from a textbook or lecture on AP Macroeconomics alone.