ECON: MACRO4 (with CourseMate, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
ECON: MACRO4 (with CourseMate, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
4th Edition
ISBN: 9781285423623
Author: William A. McEachern
Publisher: Cengage Learning
Question
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Chapter 18, Problem 1.2PA

Sub-part

A

To determine

To Determine: the entry that will be recorded in balance of payments when a Hong Kong financier purchases some U.S corporate stock.

Sub-Part

B

To determine

To Determine: the entry that will be recorded in balance of payments when a U.S tourist in paris purchases some perfumes.

Sub-Part

C

To determine

To Determine: the entry that will be recorded in balance of payments when a Japanese company sells machinery to a pineapple company in Hawaii.

Sub-Part

D

To determine

To Determine: the entry that will be recorded in balance of payments when U.S framers gave food to the children in Ethiopia that were starving.

Sub-Part

E

To determine

To Determine: the entry that will be recorded in balance of payments when the U.S Treasury sells a bond to a Saudi Arabian prince.

Sub-Part

F

To determine

To Determine: the entry that will be recorded in balance of payments when a U.S tourist flies to France on Air France.

Sub-Part

G

To determine

To Determine: the entry that will be recorded in balance of payments when a U.S company sells insurance to a foreign firm.

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Students have asked these similar questions
Look at each of the cases below from the point of view of the balance of payments for Canada. Determine the subcategory of the current account or financial account that each transaction would be classified in, and state whether it would enter as a credit or debit. a. A migrant worker in Ottawa sends $500 home to his village in Mexico. b. A Canadian charity donates five tons of rice to the Sudan to help with famine relief. c. A Canadian retired couple flies from Vancouver to Tokyo on Japan Airlines.
Explain how the following transaction makes two entries(a credit and a debit) in the balance of payments of Canada. Explain in which account each entry is recorded. a) An Indian citizen working in Vancouver makes a money transfer back to his family in India. b) A Canadian firm operating in USA, buys 1 million USD worth of computers for its workers. It pays the computers by getting a loan from a local bank. c) A Canadian firm exports 10 million USD worth of lumber to a US construction firm. The construction firm is given 90 days to pay the Canadian company.
Balance of payments accounting. For the following international transactions, identify the balance of payments accounts and whether the transaction would generate an inflow or an outflow of foreign exchange for the two countries involved. ■ TIAA-CREF—the pension fund of American college professors—purchases 1 million shares of South Africa’s Standard Bank for $16 million. ■ Air France purchases $2.5 million of jet fuel at Boston’s Logan Airport. Payment is made directly from Air France’s bank account with State Street in Boston. ■ Hong Kong–based Cathay Pacific pays a $25 million annual lease on two Boeing 777s to U.S.-based lessor GE Capital.

Chapter 18 Solutions

ECON: MACRO4 (with CourseMate, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

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