140k views
1 vote
As an order enters the system, management must monitor what two flows?

User Ephenodrom
by
8.0k points

1 Answer

2 votes

Final answer:

Management must monitor the flow of goods and services and the flow of funds when an order enters the system, impacting the current account and the financial account respectively.

Step-by-step explanation:

When an order enters the system, management must monitor two essential flows: the flow of goods and services and the flow of funds. The flow of goods and services includes activities related to the export and import of products, services, and investments.

This aspect is typically recorded in the current account. On the other hand, the flow of funds deals with financial transactions, including payments from and to international purchasers, and movements related to investments in stocks, bonds, or real estate, as well as borrowing and lending.

These financial flows are recorded in the financial account. Understanding these flows helps to maintain balance in a country's balance of payments, ensuring a healthy economic status relative to other world economies.

User Rpstw
by
8.4k points