3. Consider the following international transactions, which together make up all the transaction of the United States with the rest of the world and compile the Balance of Payments Accounts. For each transaction below, enter its value and sign, and whethe it belongs to the current or financial accounts. a. The export of wine from California to France for $100, paid for with US dollars that the French importer holds at home in a box. b. The import of a BWM for $200 from Germany, paid for with euros that the American importer held in bank account in Frankfurt. c. What is the Current Account Balance resulting from a and b? What is the Financial Account Balance? Is there a Balance of Payments deficit? A surplus?

3. Consider the following international transactions, which together make up all the transaction of the United States with the rest of the world and compile the Balance of Payments Accounts. For each transaction below, enter its value and sign, and whethe it belongs to the current or financial accounts. a. The export of wine from California to France for $100, paid for with US dollars that the French importer holds at home in a box. b. The import of a BWM for $200 from Germany, paid for with euros that the American importer held in bank account in Frankfurt. c. What is the Current Account Balance resulting from a and b? What is the Financial Account Balance? Is there a Balance of Payments deficit? A surplus?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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