The U.S.subsidiary of a South Korean company pays dividends to its parent company in South Korea causes a:

Question

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When the U.S. subsidiary of a South Korean company pays dividends to its parent company in South Korea, it represents an outflow of money from the U.S. and a transfer of funds to the parent company in South Korea. This leads to a decrease in the U.S. investment income and, therefore, results in a debit in the U.S. investment income.

The USSubsidiary of a South Korean Company Pays Dividends to Its