Canada sells machinery to a South African company, which pays Canada with South African currency (the rand) . Which of the following best describes the consequences of this transaction?
A) It increases Canadian net capital outflow because Canada acquires foreign assets.
B) It decreases Canadian net capital outflow because Canada acquires foreign assets.
C) It increases Canadian net capital outflow because Canada sells capital goods.
D) It decreases Canadian net capital outflow because Canada sells capital goods.
Correct Answer:
Verified
Q54: A Japanese firm buys lumber from Canada
Q55: Which of the following does net capital
Q56: Catherine, a citizen of Spain, decides to
Q57: If a U.S. textbook publishing company sells
Q58: Which of the following do net exports
Q60: If a Canadian shirt-maker purchases cotton from
Q61: A country has $80 million of saving
Q62: A country has $60 million of domestic
Q63: Which of the following equations is the
Q64: The country of Freedonia has a GDP
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents