What are the balance of payments accounting entries from

Reference no: EM133376883

Question: ABC decides to spend $1 billion (equivalent) to expand its food manufacturing plant in Japan. All of the funds for this expansion will be spent within Japan itself. ABC's local subsidiary borrows half of this amount from Japanese banks and draws upon its parent's cash reserves for the other half. Assuming the Japanese yen ("YEN") is trading at 100 to the U.S. dollar, what are the balance of payments accounting entries from a Japanese perspective?

Reference no: EM133376883

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