Explain for each of the below, (1) is it a credit or a debit in the U.S. Balance

Question

Explain for each of the below, (1) is it a credit or a debit in the U.S. Balance of Payments; and (2) into which of the BOP accounts would it be entered:

U.S. Import of Ukrainian wheat

Korean immigrants to the U.S., sending holiday gifts back to relatives in Seoul.

America’s Yahoo sending $4,000 dividend check to shareholder in Egypt

U.S. Export of Hollywood movies

You invest and build a oil refinery in Jordan

Panamanian retiree buys 10-year U.S. government bond

Government of Mexico sending financial aid to New York after 9/11 attack.

Scooter Libby (American) buys $6 million in shares of French nuclear plant.

Explanation / Answer

Import is a debit in US bop.

Outward Remittances are a debit.

Dividend to other country citizen is a debit.

Export would earn money, so its a credit.

Financial aid is generally not repayable, so its a credit

American buying shares in France is an outflow. It is a debit.

Investing is a debit but once the earning starts, it becomes a credit.

Buying a bond by an outsider is a credit.

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