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Business, 25.01.2021 20:50 alishakira690

Explain how, if at all, 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 in any of current, financial or capital account: (a) A U. S. resident buys shares of a Portuguese company paying via wire transfer from her Wells Fargo account to a Portuguese bank. (b) An Australian tourist rents a car in the U. S. and pays with her Australian credit card. (c) A U. S.-owned factory in Britain uses local earnings (i. e., in Britain) to buy additional equipment from a Britain firm.

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Explain how, if at all, each of the following transactions generates two entries (a credit and a deb...

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