Explicit about which part of balance of payments is affected

Assignment Help Business Economics
Reference no: EM131006337

Show how each of the following would affect the U.S. balance of payments. For each case be explicit about which part of the Balance of Payments is affected (CA, KA, or FA) and by how much. For each transaction indicate in which of the 6 types (import/export of goods and services, import/export of factor services etc) it falls:

(a) A California computer manufacturer purchases a $50 hard disk from a Malaysian company, paying the funds from a bank account in Malaysia.

(b) A U.S. tourist to Japan sells his iPod to a local resident for yen worth $100.

(c) The U.S. central bank sells $500 million of its holdings of U.S.Treasury bonds to a British financial firm and purchases pound sterling foreign reserves.

(d) A foreign owner of Apple shares receives $10,000 in dividend payments, which are paid into a New York bank.

(e) The central bank of China purchases $1 million of export earnings from a firm that has sold $1 million of toys to the United States, and the central bank holds these dollars as reserves.

(f) The U.S. government forgives a $50 million debt owed by a developing country.

Reference no: EM131006337

Questions Cloud

What happens to the aggregate demand curve : What happens to the aggregate demand curve when transfer payments are increased by $100 million, and the government raises income taxes $100 million in the same month to pay for the transfer payments?
Essay on digestion and absorption of carbohydrates : Write an essay on digestion and absorption of carbohydrates (carbs), fats, and proteins
At the time the bonds had a remaining discount : A company retired $60 million of its 6% bonds at 102 ($61.2 million) before their scheduled maturity. At the time, the bonds had a remaining discount of $2 million. Prepare the journal entry to record the redemption of the bonds.
Write the demand equation and the supply equation : Past sales show that when a scanner is priced at $175, the quantity demanded is 350 units per week. For each $5 drop in price below $175, the quantity demanded rises by 50 units per week. The manufacturer will not market any of the devices if the pri..
Explicit about which part of balance of payments is affected : Show how each of the following would affect the U.S. balance of payments. For each case be explicit about which part of the Balance of Payments is affected (CA, KA, or FA) and by how much. For each transaction indicate in which of the 6 types (import..
Points of a continuum of potential solutions : Consider the purchase of a new PC to be used by you at your work (or by you at a job that you would like to have). Describe in detail three alternatives for this new PC that represent the low, middle, and high points of a continuum of potential so..
Find the expression for the steady state current : Given a series RL circuit where v(t) = 10 sin (60πt) volts, R = 1 Ω, and L = 5.0 times 10-2H. Find the expression for the steady state current i(t) with phasor method (modified version of online HW4 extra-credit).
Discuss mandatory and desirable features of system : From this ranking and your understanding, identify and discuss mandatory and desirable features of such a system. Based on this identification, propose three alternative design solutions-low, medium, and high-for the library management information..
Brief description of traditional project management approach : A discussion of the types of projects for which traditional project management approaches would be best suited, versus the types of projects for which non-traditional project management approaches would be more effective.

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate the expected revenue and expected variable costs

Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of..

  What is law of diminishing returns

What is the Law of Diminishing Returns. Discuss a company's two short run options: 1. stay open or 2. shut down.

  Elucidate what resources does he have at his disposal

Within the next year? Over the long term. Elucidate what resources does he have at his disposal to enhance the reputation of the firm and turn it round.

  Should wardco be required to treat the water in this case

If it cost Wardco $10million to treat the water and the value of mined products to customers is $8million, requiring water treatment would kill the project. Should Wardco be required to treat the water in this case?

  Increase the sale of renewably-produced products

Back in July 2009, Matt Kistler, a senior vice-president at Walmart, claimed the company was making progress on achieving three major goals: (1) to be supplied by 100% renewable energy; (2) to create zero-waste; and (3) to increase the sale of renewa..

  What is present value of innovation to the innovating firm

What is the present value of innovation to the innovating firm? In a patent race, what might each firm be willing to spend on research and development?

  Rothschild-stiglitz model with asymmetric information

Consider the basic Rothschild-Stiglitz model with asymmetric information and two types on consumers. A policymaker who has taken this class suggests that is might be beneficial to impose a flat tax on healthy people and distribute the tax revenue to ..

  In regards to benchmarking

Use Verizon cell phone service as an example and describe the steps and activities involved in benchmarking. Be sure to indicate which type of benchmarking would be most appropriate and why, as well as whom they should benchmark against and what they..

  Discuss how the company you selected should increase

discuss how the company you selected should increase its competitive stance in the marketplace and how management would implement the recommendations. Provide specific examples to support your response.

  What factors affected the selection of the attributes

Using the consumer buying matrix p 256, analyze a consumer purchase you plan to make sometime in the future. What factors affected the selection of the attributes and weights you chose for this purchase analysis?

  The market is in long-run equilibrium

The market is in long-run equilibrium. What market structure best describes the pizza market in this town? Explain. What is average variable cost at this output level for each of the four shops? Explain how you derived this result.

  Opportunity interest rate equal to its cost of capital

ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televised Monday night football. What is the net present value of this investment if the parent Disney Company has an opportunity interest rate equal to it..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd