Suppose the Japanese firm, Toyota, builds a new plant to produce cars in Ohio. This is

A.

a payments deficit for Japan.

B.

net private domestic investment in the United States.

C.

foreign direct investment in the United States.

D.

net private foreign domestic investment in Japan.

Toyota's investment in the new plant causes

A.

an increase in the financial account balance in Japan.

B.

an increase in the financial account balance in the United States.

C.

an increase in the current account balance in the United States.

D.

no change in the financial account balance in either country.