A US Based Company Sells Semiconductors to an Italian Firm

Multiple Choice

A U.S. based company sells semiconductors to an Italian firm. The U.S. company uses all of the revenues from this sale to purchase automobiles from Italian firms. These transactions

A) increase both U.S. net exports and U.S. net capital outflow.
B) decrease both U.S. net exports and U.S. net capital outflow.
C) increase U.S. net exports and do not affect U.S. net capital outflow.
D) None of the above is correct.