Balance of Payment in Sweden and Norway - Essay Example

The capital transfer has been the same throughout although it indicates stability in investments still needs to improve as direct investments have declined to a dangerous extends showing a negative value. B- Specify the importance of the balance of payment for your businessThe balance of payment is extremely important for a business. It helps the business evaluate the gap between receipts and payments. The focus of the business should be to increase exports and decrease imports in order to make the business self-sufficient.

It helps businesses establish ways to create goods that can substitute imports. It helps businesses establish backward integration. IT invites investments as the number of recipients increases as a result businesses flourish. While payments increase capital outflows so the balance of payments gives the strategic managers the idea to implement a plan that should focus on reducing payments and increasing receipts result in a surplus of the balance of payments.