When a Canadian company buys 40 percent of the publicly traded stock of a French company on France's stock market,Canada's balance of payments records the transaction as an ________.

Question

Quizplus · Accepted Answer

When a Canadian company buys stock in a French company, it is an outflow of capital from Canada, as Canadian funds are used to purchase foreign assets. This is recorded with a minus sign in Canada's balance of payments.

When a Canadian Company Buys 40 Percent of the Publicly