Table summarizes hypothetical transactions, in billions of U.S. dollars that took place during a given year.

a. Calculate the U.S. merchandise trade, services, goods and services, income, unilateral transfers, and current account balances.

b. Which of these balances pertains to the net foreign investment position of the United States? How would you describe that position?

INTERNATIONAL TRANSACTIONS OF THE UNITED STATES

(BILLIONS OF DOLLARS)

Travel and transportation receipts, net ........$25

Merchandise imports ..............450

Unilateral transfers, net ............. 20

Allocation of SDRs .............. 15

Receipts on U.S. investments abroad ....... 20

Statistical discrepancy ............. 40

Compensation of employees ........... 5

Changes in U.S. assets abroad, net ........150

Merchandise exports ...............375

Other services, net ............... 35

Payments on foreign investments in

the United States ............... – 10