In country A In country B Construction abroad Construction in the compiling economy Credit
10
260
a
Credit
4 545
b
Debit 4 545
b
Debit
10 260
a
If the goods valued at 645 units that are purchased in country A are shipped to country B for use in the
construction process, the balance of payments compiler must ensure that they are excluded from the goods
component of the balance of payments because they are purchases made by residents of country A from residents
of country A, and not purchases made in country B.
a
Gross value of construction services.
b
Amount of goods and services purchased by enterprise A in economy B (the host economy), equal to 525+1730+2290 units; this
amount would be recorded in other business services under BPM5 recommendations.
3.95. Expenditure on goods and services in the host economy includes expenditure by the construction
enterprise on locally supplied items as well as
expenditure in the host economy by the construction
enterprise on goods and services that have been
imported to the host economy, where the goods and
services are for use on the construction site. In the
