Indicate the plus entry and the minus entry

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Reference no: EM131245582

Keep in mind Table listing the effects of individual transactions on the balance of payments.

948_Table 01.jpg

Indicate the plus entry and the minus entry for the following transactions. For example, the country exports goods in the amount of $1000 paid for by the importer by a check on a foreign bank. The entry would be:

a) Country A exports $10,000 of goods to country I paid for by the importer by a check on his account with a bank in country A.

b) Country A imports $5000 worth of merchandise paid for by a check on a bank in country A.

c) Direct investment income of $2000 was received by a firm in country A from a foreign subsidiary, which paid by drawing a check on a bank in its own country F.

d) A multinational firm domiciled in country A made an investment of $1 million on a direct basis to establish a foreign subsidiary in country G. Payment was made by drawing on its bank account in country A.

e) A citizen of country A made a gift of $3000 to a friend in a foreign country who deposited the check drawn on a bank in country A in his own bank in country M.

f) A citizen in country A bought an airline ticket to Europe that he purchased from Lufthansa Airlines by a check for $500 drawn on a bank in country A.

Reference no: EM131245582

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