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There is only one correct answer. Determine how each of the following transactions will be classified and recorded in the U . S . balance
There is only one correct answer. Determine how each of the following transactions will be classified and recorded in the US balance of payments:
A The US subsidiary of European financial giant, Credit Suisse, pays dividends to its parent in Zurich. The dividend payment will be recorded as a debt.
B A US computer programmer is hired by a British company for consulting and gets paid from the US bank account maintained by a British company. The British company paying out its account in US will be recorded as a credit.
C McDonalds Corporation imports Canadian beef, paying for it by transferring the funds to a New York bank account kept by the Canadian beef producer. The imports made by McDonalds will be recorded a credit.
D Suppose the InBev Corporation a nonUS MNC buys the AnheuserBusch Corporation, paying the US shareholder's cash. Payment by InBev will be recorded as a debit.
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