Scenario: Happyland
Happyland, a country of about 48 million people with beautiful beaches, vast natural resources, and a highly skilled labor force, is encouraging foreign direct investment flows. The country has been exporting textiles, computer hardware, and software. The net result of trade is that Happyland exports far more goods and services and receives more income from abroad than it imports and pays abroad.
-The exporting of Happyland's textile and computer products are included in its ________.
A) capital account
B) merchandise account
C) services account
D) corporate account

Question

Quizplus · Accepted Answer

The exporting of textile and computer products falls under the category of goods, which is covered under the merchandise account in the balance of payments.

Scenario: Happyland Happyland, a Country of About 48 Million People with Beautiful