A Canadian Firm Opens a Factory That Produces Camping Equipment

Multiple Choice

A Canadian firm opens a factory that produces camping equipment in Albania. Which of the following correctly identifies the effects of this transaction?

A) Canadian net capital outflow increases, and Albanian net capital outflow decreases.
B) Canadian net capital outflow decreases, and Albanian net capital outflow increases.
C) Only Canadian net capital outflow increases.
D) Only Albanian net capital outflow increases.