If a U.S.company imports 10 Toyotas from Japan at $15,000 each,and the Japanese company buys airline tickets on a U.S.airline with the money,how does this affect the U.S.balance of payments accounts?

Question

Quizplus · Accepted Answer

The import of Toyotas from Japan would be recorded as a debit in the merchandise trade account, as it involves the transfer of goods across borders. The purchase of airline tickets by the Japanese company from a U.S. airline would be recorded as a credit in the services account, as it involves the transfer of intangible services across borders. Therefore, the correct option is Debit: merchandise trade; credit: services.

If a UScompany Imports 10 Toyotas from Japan at $15,000 Each,and the Each,and