Assume Anaconda Copper Inc. created a subsidiary in Chile last year to mine copper ore. The proportion of net income paid back to the parent company as a dividend would be recorded in the current account subcategory of
A) services trade.
B) income trade.
C) goods trade.
D) current transfers.

Question

Quizplus · Accepted Answer

The proportion of net income paid back to the parent company as a dividend would be recorded in the income trade subcategory of the current account. This includes income from investment in foreign affiliates, such as profits or dividends received by the parent company from subsidiaries located abroad.