Describe how each of the following transactions affects the U.S. Current Account and the net international

investment position (or net foreign assets or external wealth). When describing the impact on the net

international investment position, take into account valuation effects on the value of assets and liabilities.

Example of a transaction: US exports 2,000,000 dollars worth of computers to Mexico. Mexico pays in US

dollars. Answer: Current account increases by 2,000,000 (the trade balance of the current account), and net

foreign assets rise by 2,000,000 (higher US dollar reserves).

1. Samsung, a corporation in Korea, provided financial advice on an investment worth of 1$ billion dollars

with the state of Virgina to install wind turbines in 2020. The state of Virginia payed $60000 with US

dollars in 2019.

2. A German hedge-fund received from Apple stock-dividents equal to $300,000 and deposited to the

fund's account in Deutsche Bank.

3. A Californian winery buys sparkling wine in bulk from Chile and pays with a $50000 wire transfer.

4. The United States gives 3-month of military aid to a foreign country, in the form of fighter jets with a

cost of $2 billion dollars

5. US investors buy $2-million worth real estate in Japan from a Chinese real-estate fund, paying from

their account in Switzerland.

6. Jorge Ramrez, a landscape architect residing in Monterrey, Mexico, works for three months in Durham,

NC, creating an indoor garden for a newly built museum and receives wages for $35,000.

7. Jinill Park's mother, a resident of South Korea, pays her son's tuition to Columbia University via a

direct deposit.

8. The U.S. dollar depreciates by 10 percent vis-'a-vis the euro. US assets abroad (A) are denominated

in Euro and US liabilities (L) are denominated in US Dollars.