What is balance of payments? How could (2) the acquisition of a Moldovan soft drinks company by a US company for 5 million dollars in 2018 and (3) annual profits from the US investment in Moldova at 145.000 $ in 2019 be recorded in the balance payments in Moldova and the USA in 2018 and 2019.
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What is balance of payments? How could (2) the acquisition of a Moldovan soft drinks company by a US company for 5 million dollars in 2018 and (3) annual profits from the US investment in Moldova at 145.000 $ in 2019 be recorded in the balance payments in Moldova and the USA in 2018 and 2019.
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- (1) What is balance of payments? How could (2) the acquisition of a Moldovan soft drinks company by a US company for 5 million dollars in 2018 and (3) annual profits from the US investment in Moldova at 145.000 $ in 2019 be recorded in the balance payments in Moldova and the USA in 2018 and 2019. (Please answer 1,2,3 seperately.)Suppose a British investor is expected to receive payment of 150,000 dollars ($) in twelve months from a U.S. bank. The annual interest rate in dollar deposit is 5% and the annual interest rate in pound deposit is 10%. If the present exchange rate is 0.50 pound per dollar deposit and interest parity holds, then. (a) How many pounds does the British investor expect to receive at the maturity date of his U.S. investment? (Show the computation process). (b) How many pounds were initially invested? Fully explain all your answers (calculation).Find the Balance of the payment if the balance of current account is $620 balance of capital and financial account is $91 and $72 respectively.
- 19. In balance-of-payments accounting, the sale of a foreign production facility by a SA firm is a __________item in the SA balance of payments; the deposit of funds in a foreign bank account by a SA citizen__________ item in the SA balance of payments. A Debit; also is a debitB Debit; is a creditC Credit; is a debitD Credit; also is a creditCurrency Values in 2015 and 2016 Canada (dollar) (peso) (yuan) (yen) Country Currency Percentage 2015 2016 0.82710.6892 0.0683 0.0538 0.1608 0.1522 |0.0080 0.0086| 36% Мexico 28% China 20% Japan 16% Based on the exchange rate table, which statement is correct? A. The Chinese yuan appreciated in value between 2015 and 2016. B. The Canadian dollar depreciated in value between 2015 and 2016. C. The Japanese yen depreciated in value between 2015 and 2016. D. The Mexican peso appreciated in value between 2015 and 2016.McKinsey & Company, a U.S. consulting firm, collected $5 million USD consulting fees from European clients. On the US balance of payment statement, this cross-border transaction will A. increase the current account balance. B. Increase the financial account balance. C. decrease the capital account balance. D. have no impact.
- The following information on Ghana’s Balance of Payments Accounts for 2013 (million U.S. Dollars) is provided. CURRENT ACCOUNT US$ 1. Merchandise Exports ( £.o.b) 11,679.40 2. Merchandise Imports (£.o.b) -16,092.50 Trade balance -4,413.1 3. Services (net) -2,346.84 Receipts 3,539.40 Payments -5,886.24 4. Income (net) 4,155.98 Receipts -592.96 Payments 202.24 5. Current Transfers (net) 795.20 CAPITAL & FINANCIAL ACCOUNT 6. Capital Account 1,127.78 Capital Transfers 1,127.78 7. Financial Account Direct Investments 3,355.68 Portfolio Investments -87.28 Other Investments 1,737.96 Of which: Short term capital -164.12 Other capital investments 2,172.40…The following information on Ghana’s Balance of Payments Accounts for 2013 (million U.S. Dollars) is provided. CURRENT ACCOUNT US$ 1. Merchandise Exports ( £.o.b) 11,679.40 2. Merchandise Imports (£.o.b) -16,092.50 Trade balance -4,413.1 3. Services (net) -2,346.84 Receipts 3,539.40 Payments -5,886.24 4. Income (net) 4,155.98 Receipts -592.96 Payments 202.24 5. Current Transfers (net) 795.20 CAPITAL & FINANCIAL ACCOUNT 6. Capital Account 1,127.78 Capital Transfers 1,127.78 7. Financial Account Direct Investments 3,355.68 Portfolio Investments -87.28 Other Investments 1,737.96 Of which: Short term capital -164.12 Other capital investments 2,172.40…Which of the following will enter as a credit in the U.S. balance-of-payments financial account? (a) The sale of an American baseball team to a Japanese industrialist (b) The sale of Japanese electronics to an American (c) The purchase of a Japanese automobile by a U.S. consumer (d) The purchase of a Japanese electronics plant by an American industrialist
- How would each item be counted in the US balance of payments? Give sign, category (e.g. export, FDI, income flow, etc.) and account (CA, FA or OR).Appreciation vs depreciation under fixed exchange rateJetta production cost in 2002 and 2003 was 8,500 Euro per Jetta. Jettas were sold in US at $12,000 in 2002 and 2003. Forward hedge exchange rate was 1 $/Euro in 2003. The market exchange rate was 1.83 $/Euro (i.e. rate without hedge) in 2003. If 1,500 Jetta were sold in US, in 2003, by 40% forward hedge and 60% not hedged. What would be profits or loss from sales of 1,500 Jetta in US? € 351,639 €1, 281,946 € 1,291,661 € 362,259