Which of the following creates a negative payment in Italy's balance-of-payments accounts?
A)a French resident buys a bond issued by an Italian manufacturer
B)a Canadian-based company pays dividends to an Italian shareholder
C)a Canadian student takes a summer trip to Rome
D)a Canadian importer buys 500 cases of Italian table wine
E)an Italian company buys software from a Canadian business

Question

Quizplus · Accepted Answer

E) an Italian company buying software from a Canadian business creates a negative payment in Italy's balance-of-payments accounts because it represents an outflow of funds from Italy to Canada for the import of services.

Which of the Following Creates a Negative Payment in Italy's