what does this term mean (1 Viewer)

[ishanik]

what does the term "foreign liabilities" mean, ive come across is alot of time but dont get what it means.


thanks

 

[RivalryofTroll]

Foreign liabilities is simply a country's FINANCIAL OBLIGATIONS (foreign debt + foreign equity) to the rest of the world (i.e. other countries).

NET foreign liabilities is a country's financial obligations to the world MINUS the rest of the world's obligations to the country.

Where - foreign debt is the stock of loans owed by Australians to foreigners while foreign equity is the value of assets in Australia.

This is a good link for its relevance to the HSC course:
HSC Calculation: Net Foreign Liabilities