International Finance

Question 2: Balance of Payments (4 points):

Explain how each of the following transactions will be classified and recorded in the debit and credit of the U.S. balance of payments:

(1) Boeing Corporation exported a Boeing 747 aircraft to Japan Airlines for $50 million, and that Japan Airlines pays from its dollar bank account kept with Chase Manhattan bank in New York City.

(2) A U.S. computer programmer is hired by a British company for consulting and gets paid $ 30 000 from the U.S. bank account maintained by the British company.