Indicate how each of the following would affect Vietnam's balance of payments. Indclude a description of the debit and credit items and in each case identify which specific account is affected. a. A foreigner is paid a $5000 dividend by Vingroup b. The Russian government forgives s $100 million debt owed by Vietnam c. The Vietnamese governement gives Laos $100 in aid Please draw a table like the sample image (including arrows which indicate the increase or decrease) and explain a bit under the table (if possible, please elaborate a bit more because i want to understand). Thank you so much
Indicate how each of the following would affect Vietnam's balance of payments. Indclude a description of the debit and credit items and in each case identify which specific account is affected. a. A foreigner is paid a $5000 dividend by Vingroup b. The Russian government forgives s $100 million debt owed by Vietnam c. The Vietnamese governement gives Laos $100 in aid Please draw a table like the sample image (including arrows which indicate the increase or decrease) and explain a bit under the table (if possible, please elaborate a bit more because i want to understand). Thank you so much
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Indicate how each of the following would affect Vietnam's balance of payments. Indclude a description of the debit and credit items and in each case identify which specific account is affected.
a. A foreigner is paid a $5000 dividend by Vingroup
b. The Russian government forgives s $100 million debt owed by Vietnam
c. The Vietnamese governement gives Laos $100 in aid
Please draw a table like the sample image (including arrows which indicate the increase or decrease) and explain a bit under the table (if possible, please elaborate a bit more because i want to understand). Thank you so much
Transcribed Image Text:a. A California computer manufacturer purchases a $50 hard disk from a Malaysian company,
paying the funds from a bank account in Malaysia.
Description
Hard disk imported from
Malaysia
Decrease in Malaysian deposits
owned by U.S. firm
BOP Account
CA (↓)
FA (1)
Account (detail) Credit/Debit
-IM (↑), TB (↓) -$50
-IMFA (↓)
+$50
***The purchasing of disk is a debt entry in CA due to import. The reduction in deposits held in
Malaysia decreases the foreign asset held by American is recorded in the FA as a credit entry.
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