Suppose a Peruvian financial investor purchases a sporting goods store in Colorado JSprings, Colorado. How will this transaction be recorded in U.S. international transactions?

Question

Quizplus · Accepted Answer

The purchase of a sporting goods store in Colorado by a Peruvian financial investor qualifies as a foreign direct investment (FDI) and would be recorded in the capital account as a positive item. The current account records transactions involving goods and services, while the capital account records financial transactions such as FDI, portfolio investment, and debt flows.

Suppose a Peruvian Financial Investor Purchases a Sporting Goods Store