American company sets up a subsidiary in Brazil. This would show up on the United States' balance of payments as a: A) Debit to the current account. X B) Credit to the current account. XI 6) Credit to the financial (also known as the capital) account. D) Debit to the financial (also known as the capital) account. 8. Firms set up international business operations to do all of the following EXCEPT: A) reduce agency costs B) better market their products to foreign consumers C) use lower cost labor available in other countries D) use cheaper and more abundant natural resources 9. All of the following will increase the balance of trade deficit in the U.S., all other things being equal, EXCEPT: A) a stronger dollar V BOT B) lower U.S. tariffs on foreign imports 1 3011 C) relaxed health and safety restrictions on imports x D lower U.S. inflation BUT