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Canada Sells Machinery to a South African Company, Which Pays

Question 90

Multiple Choice

Canada sells machinery to a South African company, which pays Canada with South African currency (the rand) . Which of the following best describes the consequences of this transaction?


A) It increases Canadian net capital outflow because Canada acquires foreign assets.
B) It decreases Canadian net capital outflow because Canada acquires foreign assets.
C) It increases Canadian net capital outflow because Canada sells capital goods.
D) It decreases Canadian net capital outflow because Canada sells capital goods.

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