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

Question

Quizplus · Accepted Answer

This transaction involves a foreign investor purchasing a fixed asset (sporting goods store) in the United States, which falls under the capital account in U.S. international transactions. The purchase of the store represents a positive entry in the capital account as it reflects an inflow of foreign investment to the U.S.

Suppose a Peruvian Financial Investor Purchases a Sporting Goods Store