Unformatted text preview: • Example #3 • Using some of the gains on his stock, George donates $5,000 to a charity providing supplies to Iraq. • George’s gift is a unilateral transfer from the U.S. to Iraq. • Relief supplies are exported from the U.S. to Iraq. • Example #4 • George reads about how the U.S. Secretary of State announces it will forgive $1 billion in debt owed by the government of Pakistan. • Debt forgiveness recorded on capital account as charitable gift (asset). • Elimination of debt owed by Pakistan to U.S. decreases U.S. external assets....
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- Spring '10
- International Trade, American Express