A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2015 · Q221 Mark
A Japanese car manufacturer established a successful factory in France. How would this be shown in the Japanese balance of payments? [Table 22.1]
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Ainvestment in the factory: negative entry in the financial account, dividends and profits from the factory: positive entry in the current account
Binvestment in the factory: negative entry in the current account, dividends and profits from the factory: positive entry in the financial account
Cinvestment in the factory: positive entry in the financial account, dividends and profits from the factory: negative entry in the current account
Dinvestment in the factory: positive entry in the current account, dividends and profits from the factory: negative entry in the financial account
✓ Correct answer
A: investment in the factory: negative entry in the financial account, dividends and profits from the factory: positive entry in the current account
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