International Economics 13th Edition by Robert Carbaugh

Exercise 9

Indicate whether each of the following items represents a debit or a credit on the U.S. balance-of-payments:
a. A U.S. importer purchases a shipload of French wine.
b. A Japanese automobile firm builds an assembly plant in Kentucky.
c. A British manufacturer exports machinery to Taiwan on a U.S. vessel.
d. A U.S. college student spends a year studying in Switzerland.
e. American charities donate food to people in drought-plagued Africa.
f. Japanese investors collect interest income on their holdings of U.S. government securities.
g. A German resident sends money to her relatives in the United States.
h. Lloyds of London sells an insurance policy to a U.S. business firm.
i. A Swiss resident receives dividends on her IBM stock.