When U.S. companies establish foreign subsidiaries, this is included in the capital account.

Name: When U.S. companies establish foreign subsidiaries, this is included in the capital account.
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When U.S. companies establish foreign subsidiaries, they generally invest capital in the foreign country to establish and operate the subsidiary. Therefore, this transaction would be included in the capital account of the U.S. balance of payments.

When US Companies Establish Foreign Subsidiaries, This Is Included in the the Capital