Ch 5 Global Trade [AP & Reg]

Sreceivesfromforeigncountriesandallsomeofthepaymentswh

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Unformatted text preview: but ownership of the real [land/factory] or financial asset [stocks/bonds]. the Cap/Finan. _____ 1. Joe buys $30,000 worth of stock from Korea’s Hyundai. Cur.Acct _____ 2. France buys bombers and machine guns manufactured in N. Carolina. Cap/Finan. _____ 3. Toyota builds a Tundra manufacturing plant in San Antonio, TX. Cur.Acct _____ 4. An American purchases a Japanese made Toyota Prius. Cur.Acct _____ 5. Boeing sells a new 787 to France. Cur.Acct _____ 6. An ARAMCO employee working in Saudi Arabia sends most of his pay to his family in Plattsburgh, NY. Cur.Acct _____ 7. Americans donate $100 million in earthquake relief to Chinese relief organizations. Cur.Acct _____ 8. The U.S. exports 50 tons of chocolate to Ireland. Cap/Finan. _____ 9. Ford buys three manufacturing plants in Taiwan. _____ 10. Japanese banks purchase U.S. Treasury Bonds. Cap/Finan. Current=Short term Current Acct+Capital/Financial Acct = 0 Capital=Long term Capital & Financial Acct (16%) 7. If a country has a current account deficit, wh...
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