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Show how each of the following would affect the U.S. balance of payments by completing the corresponding statement. a. A California computer manufacturer purchases a
Show how each of the following would affect the U.S. balance of payments by completing the corresponding statement. a. A California computer manufacturer purchases a $50 hard disk from a Malaysian company. paying the funds from a bank account in Malaysia. The current account will .. because - of goods have increased. The .. account will increase because the decrease in Malaysian deposits owned by U.S. rms reduces the import of foreign assets. b. A US. owner of Sony shares receives $0,000 in dividend payments. which are paid into a Tokyo bank. Net foreign income , and so does the - . The nancial account - because of the increase in imports of foreign assets. c. The central bank of China purchases 35] million of export earnings from a rm that has sold $1 million of toys to the United States. and the central bank holds these dollars as reserves. The import of toys from China will - the current account. The - will increase because the central bank of China buys U.S. dollars and this increases the export of - by the same amount. d. The U.S. government forgives a $50 million debt owed by a developing country. The capital account will because this capital transfers out. The financial account will increase because of the reduction in
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