The value of direct investment by Ford Motor Co.in Canada is included in the U.S.
A) capital and financial account.
B) current account.
C) net export account.
D) merchandise trade account.

Question

Quizplus · Accepted Answer

Direct investment falls under the capital and financial account category, which includes investments in physical assets, financial assets, and in businesses in foreign countries. The current account includes transactions involving trade in goods and services, income (such as from investments), and transfers (such as foreign aid). The net export account, also known as the balance of trade, includes only the value of goods and services exported minus the value of goods and services imported. The merchandise trade account specifically refers to the trade of goods, not services or other transactions.

The Value of Direct Investment by Ford Motor Co