Scenario: Happyland
Happyland,a country of about 48 million people with beautiful beaches,vast natural resources,and a highly skilled labour force,is encouraging foreign direct investment inflows.The country has been exporting textiles,computer hardware,and software.The net result of trade is that Happyland exports far more goods and services and receives more income from abroad than it imports and pays abroad.
-Transactions involving the export of Happyland's textile and computer products are included in its ________.

Question

Quizplus · Accepted Answer

Transactions involving the export of goods, such as textiles and computer products, are included in the merchandise account of the balance of payments. The capital account records capital flows, the services account records exports and imports of services, and the corporate account is not a part of the balance of payments.

Scenario: Happyland Happyland,a Country of About 48 Million People with Beautiful Beaches,vast