1 Balance of Payment in Taiwan This question helps you understand how to calculate balance of...
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1 Balance of Payment in Taiwan This question helps you understand how to calculate balance of payment (BOP). In this question, domestic country is Taiwan and foreign country is USA. I assume the exchange rate for one US dollar is 25 Taiwan dollars and for one Japanese Yen is 1/4 Taiwan dollar. In other words, we need to pay 25 units of Taiwan dollars to have one unit of US dollar. Please discuss changes in Current Account, Financial Account and Capital Account for following activities. Activity o Taiwanese want to buy cars from Tesla, Inc so they need US dollars. Therefore, Taiwanese pay $3,000,000 Taiwan dollars to Bank of American to have $120,000 US dollars so that they can import cars produced by Tesla from USA. Activity 1 TSMC sold semiconductors to Apple, Inc. Total sales is $25,000 US dollars. TSMC used $10,000 US dollars to buy the stock of Alphabet, which is a US company, and keep the remaining $15,000 US dollars. Activity 2 Taiwanese A pay $250,000 Taiwan dollars to Chase Bank in USA to get these $10,000 US dollars. Then, this Taiwanese paid $10,000 US dollars to a US resident to buy a house in USA for vacation. 1 Balance of Payment in Taiwan This question helps you understand how to calculate balance of payment (BOP). In this question, domestic country is Taiwan and foreign country is USA. I assume the exchange rate for one US dollar is 25 Taiwan dollars and for one Japanese Yen is 1/4 Taiwan dollar. In other words, we need to pay 25 units of Taiwan dollars to have one unit of US dollar. Please discuss changes in Current Account, Financial Account and Capital Account for following activities. Activity o Taiwanese want to buy cars from Tesla, Inc so they need US dollars. Therefore, Taiwanese pay $3,000,000 Taiwan dollars to Bank of American to have $120,000 US dollars so that they can import cars produced by Tesla from USA. Activity 1 TSMC sold semiconductors to Apple, Inc. Total sales is $25,000 US dollars. TSMC used $10,000 US dollars to buy the stock of Alphabet, which is a US company, and keep the remaining $15,000 US dollars. Activity 2 Taiwanese A pay $250,000 Taiwan dollars to Chase Bank in USA to get these $10,000 US dollars. Then, this Taiwanese paid $10,000 US dollars to a US resident to buy a house in USA for vacation.
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Answer rating: 100% (QA)
To analyze the changes in the Current Account Financial Account and Capital Account for each activity lets break down the transactions Activity 0 Taiw... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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