U.S. retailers import toys from China. In the U.S. balance of payments account, this transaction is entered as a payment _____ foreigners in the _____ account.

Question

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When U.S. retailers import toys from China, it is considered a purchase of goods from foreigners, which is recorded as a payment to foreigners in the current account of the balance of payments. The current account tracks the trade of goods and services.

US Retailers Import Toys from China