Indicate how each of the following international transactions would be entered into the United States Balance of Payments with double-entry bookkeeping. For each side of the transaction, specify how each entry would represent a debit or credit to the current account or capital & financial account in the U.S. balance of payments. Given that this is a double-entry system of accounts, the following transactions will involve a 'credit' entry to one account with a corresponding 'debit' entry. You must state both entries. If a given transaction would not be recorded in the balance of payments, please specify this and state why. (Hint: as noted in class, it may be useful to consult the optional chapter on Balance of Payments available on the Blackboard website.) an example is shown as follows: A U.S. firm exports $500,000 worth of goods to be paid for in three months by a U.K. firm. Answer: Credit to current account by $500,000 (for merchandise exports) Debit to capital account for $500,000 (increase in foreign assets held by the U.S.) A U.S. tourist visits China and spends $100 on a Chinese painting using a U.S.-issued credit card. A Wall Street businessman in New York buys a $700,000 holiday home in Boulder, Colorado. An investor in Miami buys 100,000 Francs worth of Swiss bonds and pays using a check drawn on a Swiss bank account. Walmart decides to spend $20M to open a manufacturing plant in India. An U.S.-based entrepreneur donates $1,000 to the Japanese earthquake and tsunami relief. A U.S. citizen imports a $50 case of Belgian beer. An Indian owning a Mughalai restaurant in Ithaca, New York, sends remittances worth of $5,000 every month back to his family in Punjab, India An American entrepreneur pays an annual management fee of $6,000 to a bank in Switzerland to manage her tax-evasive investment portfolio. A businessman from California spends a vacation in Thailand, spending $3,000 while there. Indicate how each of the following international transactions would be entered into the United States Balance of Payments with double-entry bookkeeping. For each side of the transaction, specify how each entry would represent a debit or credit to the current account or capital & financial account in the U.S. balance of payments. Given that this is a double-entry system of accounts, the following transactions will involve a 'credit' entry to one account with a corresponding 'debit' entry. You must state both entries. If a given transaction would not be recorded in the balance of payments, please specify this and state why. (Hint: as noted in class, it may be useful to consult the optional chapter on Balance of Payments available on the Blackboard website.) an example is shown as follows: A U.S. firm exports $500,000 worth of goods to be paid for in three months by a U.K. firm. Answer: Credit to current account by $500,000 (for merchandise exports) Debit to capital account for $500,000 (increase in foreign assets held by the U.S.) A U.S. tourist visits China and spends $100 on a Chinese painting using a U.S.-issued credit card. A Wall Street businessman in New York buys a $700,000 holiday home in Boulder, Colorado. An investor in Miami buys 100,000 Francs worth of Swiss bonds and pays using a check drawn on a Swiss bank account. Walmart decides to spend $20M to open a manufacturing plant in India. An U.S.-based entrepreneur donates $1,000 to the Japanese earthquake and tsunami relief. A U.S. citizen imports a $50 case of Belgian beer. An Indian owning a Mughalai restaurant in Ithaca, New York, sends remittances worth of $5,000 every month back to his family in Punjab, India An American entrepreneur pays an annual management fee of $6,000 to a bank in Switzerland to manage her tax-evasive investment portfolio. A businessman from California spends a vacation in Thailand, spending $3,000 while there