Which of the following will be recorded as a debit entry in the balance of trade in merchandise account?
A) A U.S. car manufacturer selling a car to a resident of India.
B) A pub owner in Liverpool importing vodka from a U.S. manufacturer.
C) A U.S. textile manufacturer buying rawmaterial from farmers in Indonesia.
D) A Chinese car manufacturer importing car engines and other spare parts from a U.S. manufacturer.
E) A fashion designer from Michigan exporting readymade garments to a dealer in Copenhagen.

Question

Quizplus · Accepted Answer

When a U.S. textile manufacturer buys raw materials from farmers in Indonesia, it is an import transaction, which is recorded as a debit entry in the balance of trade in merchandise account.

Which of the Following Will Be Recorded as a Debit