Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Component: Payments for goods and services/Primary Income/Secondary Income Cash Flow Position:Inflow/Outflow Entry: Debit/Credit Known as: Other capital investment/Portfolio investment/Direct foreign investment For each transaction in
Component: Payments for goods and services/Primary Income/Secondary Income
Cash Flow Position:Inflow/Outflow
Entry: Debit/Credit
Known as: Other capital investment/Portfolio investment/Direct foreign investment
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 Transaction Component 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 company in Spain purchases stock in a US-based company. This component of the financial account is known asStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started