The U.S. dollar is at 20-year high. Briefly discuss the likely impact (Positive vs Negative) on: a. Company A: a US firm mainly importing products from overseas. b. Company B: a US firm exporting products to the overseas markets. c. Company C: an Italian firm that issued bonds (i.e. borrowed money) denominated in U.S. dollars 15 years ago when the exchange rate was $1.5 /euro and is about to repay the loan principal when the current exchange rate is around $1 /euro. Question 2 (0.75 points) Saved What is NOT an example of market imperfections? a) Countries impose import/export taxes b) All factors of production are easily transferable. c) Labor cannot move freely from one country to another country. d) Russia puts restrictions on capital flows. e) There are transaction and/or transportation costs You are classifying the following transactions into the different accounts of the U.S. Balance of Payments. 1. Walmart purchases clothing produced in Indonesia that it will sell in its U.S. retail stores. 2. A U.S investor receives a dividend payment from a French firm in which she purchased stock. 3. A university bookstore in Ireland purchases textbooks produced by a U.S. publishing company. Which of the answer choices is correct? a) All 3 transactions are Debit transactions. b) One transaction belong to the Financial Account and two transactions belong to the Current Account c) All 3 transactions belong to the Current Account. d) All 3 transactions belong to the Financial Account. e) All 3 transactions belong to the Capital Account