View the step-by-step solution to:

III) Balance of Payments 4.

III) Balance of Payments
4. Explain how each of the following transactions generates two entries – a credit and
a debit – in the American balance of payments accounts, and describe how each entry
would be classified:
a. An American buys a share of German stock, paying by writing a check on an
account with a Swiss bank.
b. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France and
pays with a credit card.
c. A California winegrower contributes a case of cabernet sauvignon for a London
wine tasting.
d. A U.S.-owned factory in Britain uses local earnings to buy additional machinery

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question