Suppose Columbia University, a U.S. resident, acquires $100,000 worth of shares of Deutsche Telekom from a...

  

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Suppose Columbia University, a U.S. resident, acquires $100,000 worth of shares of Deutsche Telekom from a German resident. How does this transaction affect the U.S. Balance of Payments Accounts and the U.S. Net International Investment Position in each of the following three scenarios. Be sure to list the entries in the U.S. current account and the U.S. financial account separately. 1. Columbia pays for the shares with U.S. dollar bills. 2. Columbia pays for the shares with an apartment it owns in midtown. 3. The German resident attends Columbia College and settles the tuition bill with the Deutsche Telekom shares. 4. Do all three scenarios have the same effects on the U.S. current account and on the U.S. NIIP? Suppose Columbia University, a U.S. resident, acquires $100,000 worth of shares of Deutsche Telekom from a German resident. How does this transaction affect the U.S. Balance of Payments Accounts and the U.S. Net International Investment Position in each of the following three scenarios. Be sure to list the entries in the U.S. current account and the U.S. financial account separately. 1. Columbia pays for the shares with U.S. dollar bills. 2. Columbia pays for the shares with an apartment it owns in midtown. 3. The German resident attends Columbia College and settles the tuition bill with the Deutsche Telekom shares. 4. Do all three scenarios have the same effects on the U.S. current account and on the U.S. NIIP?

Answer rating: 100% (QA)

How about we examine every situation and its effect on the US Equilibrium of Installments Records and the US Net Global Venture Position NIIP 1 Columbia pays for the offers with US dollar greenbacks F... View the full answer