1.   A rise in money supply will cause an increase in the demand for imports and for foreign assets.

2.   Part of the excess balances will be used to purchase foreign assets.

3.   This will reduce the return on UK assets below that on foreign assets.

4.   This, like the first effect, will lead to an increased demand for foreign assets and thus an increased supply of pounds on the foreign exchange market.

5.   Note that the lower interest rate causes a capital account deficit on the balance of payments as people buy foreign assets.

6.   And last week the Japanese government unveiled measures intended to encourage investors to invest in foreign assets.

7.   As the strong yen and weak economy devastate corporate profits in Japan, some companies have been forced to sell the foreign assets to bolster their balance sheets.

8.   A presidential decision to freeze foreign assets is one of the toughest economic sanctions.

9.   A stronger domestic currency also makes foreign assets more expensive for Japanese investors, keeping money in Japan.

10.   Cemex was largest emerging economy company judged by the size of its foreign assets, which include cement factories in Spain and the U.S.