Which of the following is NOT an example of FDI?

A. US-based IBM deciding to build a new computer manufacturing facility in Scotland next year.

B. US-based Hewlett-Packard buying a software company from its Swiss owner in Zurich.

C. US-based General Electric buying a 75% stake from US-based Boeing.

D. Japan based Sony's purchase of CBS records and Columbia Pictures from the US parents of these 2 companies.

The Trickle-Down Company of Fresno, California imports $800,000 worth of beef from Mexico. They pay their supplier in Mexico for the import as follows: Half in U.S. dollars, and half in Pesos (the currency of Mexico). What accounts will be credited/debited in the U.S. Balance of Payments? (Note: Dr = debit; Cr = credit).

A. Dr. Merchandise imports.

Cr. Claims on foreigners (decrease).

Cr. Liabilities to foreigners (increase).

B. Dr. Claims on foreigners (increase).

Dr. Liabilities to foreigners (decrease).

Cr. Merchandise import.

C. Dr. Liabilities to Foreigners (decrease).

Cr. Merchandise imports.

Cr. Claims on foreigners (decrease).

D. Dr. Liabilities to foreigners.

Cr. Claims on foreigners (decrease).

E. Dr. Merchandise imports.

Cr. Unilateral transfers.