A domestic firm exports a computer server to a foreign firm. In the domestic country-s balance of payments we would record:

Question

Quizplus · Accepted Answer

When a domestic firm exports a good to a foreign firm, it is recorded as a credit in the goods account of the balance of payments. Therefore, choice B is the correct answer. A debit in the services account would occur if the domestic firm provided a service to the foreign firm (such as consulting), but that is not the case in this scenario. Unilateral transfers involve a one-sided transfer of money without receiving anything in return (such as foreign aid), which is also not relevant in this scenario. Private capital and financial account records private investment and financial flows, but is not relevant in this case either.

A Domestic Firm Exports a Computer Server to a Foreign