How each transactions changes us current account balance

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Problem

Explain how each of the following transactions changes (or leaves unchanged) the U.S. current account balance.

1. Boeing barters a $100 million plane to Mexico in exchange for $100 million worth of hotel services on the Mexican coast.

2. The United States borrows $100 million long-term from Saudi Arabia to buy $100 million of Saudi oil this year.

3. The United States sells a $100 million jet to Turkey, and Turkey pays by transferring the $100 million from its bank account to the U.S. seller.

4. A British investor buys $100 million of IBM bonds from the previous U.S. owner of these bonds, and the British buyer pays by transferring the $100 million from his bank account to the previous U.S. owner

Reference no: EM133537457

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