A Norwegian firm purchases earth-moving equipment from a Canadian company and pays for it with domestic currency. What are the effects of this transaction?
A) It increases Canadian net exports and increases Norwegian net capital outflow.
B) It increases Canadian net exports and decreases Norwegian net capital outflow.
C) It decreases Canadian net exports and increases Norwegian net capital outflow.
D) It decreases Canadian net exports and decreases Norwegian net capital outflow.

Question

Quizplus · Accepted Answer

The Answer of A Norwegian firm purchases earth-moving equipment from a Canadian company and pays for it with domestic currency. What are the effects of this transaction?
A) It increases Canadian net exports and increases Norwegian net capital outflow.
B) It increases Canadian net exports and decreases Norwegian net capital outflow.
C) It decreases Canadian net exports and increases Norwegian net capital outflow.
D) It decreases Canadian net exports and decreases Norwegian net capital outflow.

A Norwegian Firm Purchases Earth-Moving Equipment from a Canadian Company