4. In 2010 the country of Ikonomia has a current account deficit of $1 billion and a nonreserve financial account surplus of $750 million. Ikonomia’s capital account is in a $100 million surplus. In addition, Ikonomian factories located in foreign countries earn $700 million.

Ikonomia has a trade deficit of $800 million. Assume Ikonomia neither gives nor receives unilateral transfers. Ikonomia’s GDP is $9 billion.

a. What happened to Ikonomia’s net foreign assets during 2010? Did it acquire or lose foreign assets during the year?