How would each of the following transactions show on U.S. balance of accounts?20 (i) Payments of $50 million in social security to U.S. citizens living in Costa Rica. (ii) Sale overseas of 1,25,000 Elvis Presley CDs. (iii) Tuition receipts of $3 billion received by American universities from foreign students. (iv) Payment of $1 million to U.S. consultants A.D. Little by a Mexican company. (v) Sale of a $100 million Eurobond issue in London by IBM. (vi) Investment of $25 million by Ford to build a parts plant in Argentina. (vii) Payment of $45 million in dividends to U.S. citizens from foreign companies.
How would each of the following transactions show on U.S. balance of accounts?20 (i) Payments of $50 million in social security to U.S. citizens living in Costa Rica. (ii) Sale overseas of 1,25,000 Elvis Presley CDs. (iii) Tuition receipts of $3 billion received by American universities from foreign students. (iv) Payment of $1 million to U.S. consultants A.D. Little by a Mexican company. (v) Sale of a $100 million Eurobond issue in London by IBM. (vi) Investment of $25 million by Ford to build a parts plant in Argentina. (vii) Payment of $45 million in dividends to U.S. citizens from foreign companies.
Chapter36: Exchange Rates And Financial Links Between Countries
Section: Chapter Questions
Problem 14E
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How would each of the following transactions show on U.S. balance of accounts?20 (i) Payments of $50 million in social security to U.S. citizens living in Costa Rica. (ii) Sale overseas of 1,25,000 Elvis Presley CDs. (iii) Tuition receipts of $3 billion received by American universities from foreign students. (iv) Payment of $1 million to U.S. consultants A.D. Little by a Mexican company. (v) Sale of a $100 million Eurobond issue in London by IBM. (vi) Investment of $25 million by Ford to build a parts plant in Argentina. (vii) Payment of $45 million in dividends to U.S. citizens from foreign companies.
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