Last year ABCD Corp., a New York firm, earned $1.5 million from business it conducted in Brazil. Its earnings are recorded in the balance of payments as

Question

Quizplus · Accepted Answer

The earnings of $1.5 million are considered income received, as they represent the profits earned by the New York firm through its business activities in Brazil. An import refers to goods or services purchased from a foreign country, a net transfer refers to a transfer of funds without receiving anything in return, and capital refers to investment in assets or enterprises for the purpose of making a profit.

Last Year ABCD Corp