1. Balance of payments For each transaction in the table, indicate the current account component, cash flow position, and type of entry on the balance-of-payments account. US Cash Flow Position Entry on US Balance-of- Payments Account Component Transaction Consumers in Japan purchase baseball jerseys from their favorite US baseball teams. The jerseys are produced in the United States. An American investor owns stock in a Spanish company and receives a dividend payment from that company. The United States government provides foreign aid to another country after a natural disaster. Consider the case where a company in Spain purchases stock in a US-based company. This component of the financial account is known as 7. Factors affecting international capital flows A decrease in the tax rate on dividends in a country is likely to decrease portfolio investment in that country. An increase in the tax rate on corporate earnings in a country is likely to direct foreign investment (DFI) in that country