https/fel ECON-2020-W77-Mic... roblem 33-4 Question wing table gives five transa
ID: 1111443 • Letter: H
Question
https/fel ECON-2020-W77-Mic... roblem 33-4 Question wing table gives five transactions between U S residents and the rest of the world, Complele this table by indicating how each tem afle of payments. Do this by using the letter D to indicate deficit item and S to indicate surplus item Transaction tem Type A Central European company sells products to a US hobby-store chain Jararsua sesferits pay 2u S tavel ca ground tansportation andours af residents pay a USt and tours of various U S cities, including New York, Chicago, and Orlando A Mexican company pays a U S accounting firm to audit its income statements US ch A US microprocessor manufacturer purchases raw materials from a Canadian fim urches and mosques send relief aid to Pakistan following a major earthquake in that nation ur answer in the edit fields and then click Check Answer Clear All Final Chec showing t in ePortfolioExplanation / Answer
Answer:-
1. A Central European company sells products to a U.S. hobby-store chain. :- D
Items bought will result in decrease in balance of payments
2. Japanese residents pay a U.S. travel company to arrange hotel stays, ground transportation, and tours of various U.S. cities, including New York, Chicago, and Orlando. $
Tourism will help in earning foreign money thus increasing balance of payments
3. A Mexican company pays a U.S. accounting firm to audit its income statements. $
Income will result as increase in balance of payments
4. U.S. churches and mosques send relief aid to Pakistan following a major earthquake in that nation. D
Sending money will reduce balance of payments
5. A U.S. microprocessor manufacturer purchases raw materials from a Canadian firm. D
Due to purchase of raw material from foreign company will reduce the balance of payments
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.