Answered step by step
Verified Expert Solution
Question
1 Approved Answer
recode all transactions in 2012 and 2013 balance of payment of the US and Germany: BMW exported 20,000 cars ($60 million) annually to the US
recode all transactions in 2012 and 2013 balance of payment of the US and Germany: BMW exported 20,000 cars ($60 million) annually to the US by 2012. BMW invested $20 million to expand its manufacturing in the USA in 2012, namely BMW USA. BMW USA purchased $2 million manufacturing equipments from suppliers in Japan, and $1 million testing equipments from suppliers in Germany in 2012. The expanded manufacturing capacity is in place in 2013. In 2013, BMW's export to the US reduced to 10,000 cars ($30 million), and the other 10,000 cars ($30 million) were supplied by local BMW USA manufacturing. BMW USA also exports 2,000 cars ($6 million) to Mexico, 5,000 cars ($15 million) to China each year. BMW USA starts to export 1,000 cars ($3 million) to Germany annually since 2013. BMW USA imports $1 million materials from Germany to support its production in 2013. BMW USA repatriated $0.5 million profits to Germany in 2013
Step 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