Essay
Show where each of the following transactions belongs on the Canadian balance of payments table,using an exchange rate of 100 Japanese yen per Canadian dollar.
a.A Japanese firm spends 5 billion yen to buy personal computers from IBM (a Canadian firm).
b.A wealthy Japanese businessman gives $100 thousand to the San Diego Zoo.
c.A Canadian firm buys 1 million Sony Walkmans at 6000 yen each (Sony is a Japanese firm).
d.A Japanese investment banking firm buys 500 million dollars' worth of newly issued Canadian government Treasury bills.
e.Canadian steel firms send 2000 executives to Japan to take courses in the Japanese method of steel production and Japanese management techniques,paying 2 million yen per executive.
f.Repeat parts a.- e.for the balance of payments table of Japan.
Correct Answer:

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