Balance of Payments
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How will the following transactions be reflected in the U.S. balance of payments?
a. A U.S. MNC sells $5 million in automotive parts to a firm in Italy, receiving a check drawn on the Italian company's U.S. bank account.
b. A Japanese corporation purchases a plant in the United States for $200 million, using the proceeds of a loan from a U.S. bank.
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How will the following transactions be reflected in the U.S. balance of payments?
a. A U.S. MNC sells $5 million in automotive parts to a firm in Italy, receiving ...
Purchase this Solution
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