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Look at the four examples and identify in which category/account these transactions are recorded in our balance of payments. 1. A Canadian company in exports

Look at the four examples and identify in which category/account these transactions are recorded in our balance of payments.

1. A Canadian company in exports timber to Germany . The company uses a British shipping company to ship the goods.

2. A Canadian mining company has invested in a tin mine in Papua New Guinea . The company receives a Dividend of $75 million . Where are we going to record this item in the Balance of Payments account.

3. A US Corporation is investing $250 million to set up a factory to manufacture automobile parts in Ontario, Canada . Where are we going to record it.

4. A British Mutual fund company is investing 100 million pounds in Canada. They are buying Stocks and Bonds in Canada.

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