If a French company sells 1000 gallons of Perrier to a U.S. company at 5 euros per gallon, and uses the money to buy stock in a Spanish cork company, how does this affect the French balance of payments accounts?
A) Decrease in financial account; increase in merchandise trade
B) Decrease in merchandise trade; increase in financial account
C) Decrease in net investment income from abroad; increase in financial account
D) Decrease in merchandise trade; increase in net income from abroad
A
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As a measure of competition in an industry, concentration ratios have several flaws. One of these flaws is that concentration ratios
A) are calculated for the national market, even though competition in some industries is mainly local. B) assume that all industries have low barriers to entry. C) assume that a ratio less than 40 percent means an industry is perfectly competitive. D) assume there are only four firms in an industry.
The primary duty of the customs agency of a government is the assessment and collection of all duties, taxes, and fees on imported merchandise.
a. true b. false
If the price of a good rises, then the equilibrium consumption of that good:
A. decreases if it is a normal good. B. increases if it is an inferior good. C. remains the same. D. None of the statements is correct.
Which of the following conditions will occur when two countries are engaged in a credible, fixed exchange rate regime?
A) E = 1 B) E > 1 C) i = i D) E < 1