Author Question: Which of the following will be recorded as a credit entry in the U.S. balance of trade in ... (Read 43 times)

tingc95

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Which of the following will be recorded as a credit entry in the U.S. balance of trade in merchandise account?
 a. A U.S. car manufacturer selling a car to a resident of India.
  b. A French wine manufacturer selling wines to a distributor in Seattle.
  c. A U.S. investor investing in Japanese stocks.
  d. A U.S. steel manufacturer importing iron ore from Zambia.
  e. A U.S. resident buying diamonds from a diamond manufacturer in Kenya.

Question 2

Suppose a U.S. resident buys a car from a car maker in Japan. This transaction will:
 a. have a negative effect on Japan's balance of trade in merchandise.
  b. have a negative effect on the U.S. balance of trade in merchandise.
  c. have a positive effect on the U.S. balance of trade in merchandise.
  d. bring money into the United States.
  e. have no effect on Japan's balance of trade in merchandise.



Kjones0604

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Answer to Question 1

a

Answer to Question 2

b



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