This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How are the current account and the financial account related? What will be an ideal ... (Read 72 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
on: Jun 30, 2018
How are the current account and the financial account related?
 
  What will be an ideal response?

Question 2

Foreign outsourcing is
 
  A) the transfer of operations to foreign contractors.
  B) an example of internalization.
  C) an example of foreign direct investment.
  D) currently illegal in the U.S.
  E) the substitution of immigration for foreign direct investment.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

InfiniteSteez

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 30, 2018
Answer to Question 1

These two accounts are inversely related: the financial account is the flip side of the current account. When a country runs large deficits in its current account, it is financed by large surpluses in its financial account. In other words, when a country imports more than it exports, it must finance that deficit with a surplus of credits in its financial account.

Answer to Question 2

A


MirandaLo

  • Member
  • Posts: 538
Reply 2 on: Jun 30, 2018
Gracias!

lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Terms Related to Abnormal Blood Pressure Readings Terms Related to Abnormal Blood Pressure Readings
Procedures and Diagnostic Tests Related to the Female Reproductive System Procedures and Diagnostic Tests Related to the Female Reproductive System
What are examples of ideal forms? What are examples of ideal forms?
Concentric double-pipe heat exchanger for co-current flow Concentric double-pipe heat exchanger for co-current flow
A very light ideal spring stretches by when it is used to hang a 135-N object. What is the ... A very light ideal spring stretches by when it is used to hang a 135-N object. What is the ...
Which of the following is not a unit factor related to a 15.0% aqueous solution Which of the following is not a unit factor related to a 15.0% aqueous solution
Video: Central Nervous System Animation

For a complete list of videos, visit our video library