Microsoft, a Seattle software company, purchases a new office building in Vancouver, Canada. In the U.S. balance of payments account, this transaction is entered as a payment _____ foreigners in the _____ account.

Question

Quizplus · Accepted Answer

The purchase of an office building in another country by a U.S. company is recorded as a capital outflow in the financial account of the U.S. balance of payments, reflecting a payment to foreigners.

Microsoft, a Seattle Software Company, Purchases a New Office Building