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Suppose That a Mexican Company Buys a Building in New

Question 25

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Suppose that a Mexican company buys a building in New York City from an American company. Assume that this American company takes the proceeds from this sale and purchases and equal amount of stock in a Mexican based company. How will the effect of these two transactions impact the net wealth position of the U.S.?

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If the U.S. took the pesos and bought se...

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