If a U.S.company buys an electrical generator made in Japan by a Japanese firm,and the Japanese firm uses the payment to buy stocks issued by a U.S.company then

Question

Quizplus · Accepted Answer

The U.S. imports increase because the U.S. company is buying a product (the generator) from Japan. There is no increase in U.S. exports because the transaction involves the Japanese firm purchasing U.S. stocks, which is a financial transaction, not a trade of goods or services.

If a UScompany Buys an Electrical Generator Made in Japan by a by a Japanese