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9. Indicate whether each of the following items represents a debit or a credit on the U.S. balance- of-payments: a. A U.S. importer purchases a

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9. Indicate whether each of the following items represents a debit or a credit on the U.S. balance- of-payments: a. A U.S. importer purchases a shipload of French wine. b. A Japanese automobile firm builds an assembly plant in Kentucky. c. A British manufacturer exports machinery to Taiwan on a U.S. vessel. d. A U.S. college student spends a year studying in Switzerland. e. American charities donate food to people in drought plagued Africa. f. Japanese investors collect interest income on their holdings of U.S. government securities. g. A German resident sends money to her relatives in the United States. h. Lloyds of London sells an insurance policy to a U.S. business firm. i. A Swiss resident receives dividends on her IBM stock. TUJU Analysis (20%) A Chinese exporter exported 5000 sets electrical household appliances to an importer on the basis of USD 600 per set CFR Los Angeles. Both parties agreed to stipulate the following in the contract: "....... 40% payment by T/T in advance and 60% payment by D/P 90 days after sight. The buyer should remit the 40% of total value on or before September 30", 2008 Shipment from Chinese port to Los Angeles, not later than Oct. 21", 2008. Packed in wooden box fumigated more over 12 hours with H2S gas. Partial shipment and transshipment are prohibited. ......" After received buyer's remittance money September 28th, the exporter shipped 3000 sets in Shanghai Port on Oct. 4th, 2008, then sent shipping advice on time to the importer and got one set of clean on board B/Ls. Then the exporter shipped the other 2000 sets on board the same vessel in Guangzhou Port on Oct. 8th, 2008, sent shipping advice on time to the importer and got other one set of clean on board B/Ls. And then the vessel began to sail to Los Angeles. 1. Whether the seller has breached the contract provision of "Partial shipment and transshipment are prohibited" or not? Why? (10%)

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