When a Canadian company purchases colour television sets from a Japanese firm and the Japanese firm uses the proceeds from its sale of colour televisions to buy real estate in Canada,Canada's ________ and there is a capital ________ Canada.

Question

Quizplus · Accepted Answer

The Canadian company is importing colour television sets from Japan, therefore imports are increasing. The Japanese firm is using the proceeds from its sale of colour televisions to buy real estate in Canada, therefore there is an inflow of capital into Canada.

When a Canadian Company Purchases Colour Television Sets from a Japanese