Question

French Balance of Payments calculation FRANCE Balance of Payments Current Account Goods & Services Factor Income Unilateral transfers Subtotal Tranactions during 2016 1 French citizens send in remittances to family members abroad. 2 GM transfers from his French bank account to its U.K. account. 3 Foreign investors purchase Sanofi (French) stock. 4 Peugeot (French co.) builds a plant in South Carolina. 5 SocGen (French co.) pays dividends to foreign shareholders. 6 Danone (French Co.) builds a production facility in Brazil. Middle Eastern countries deposit crude oil profits in Paris-based accounts. 8 French consumers buy clothes made in China and India. 9 French retailers import toys made in the Philippines. 10 AEgyptian gas retailer purchases oil from Total SA (French co.). 11 French investors receive dividends from their holdings of Amazon.com stock. 12 The Bank of Argentina buys of French Treasury Bonds 13 French investor buys in yen-denominated bonds from Toyota. 14 French investors receive in interest from their Japanese bond holdings. 15 French investors buy shares of Tesla (U.S.). 16 The French Treasury pays interest to foreign lenders. 17 France sends unilateral aid to Haiti 18 South African companies buys insurance from AXA SA (French Co.). Amount €2,000,000 €5,000,000 €8,000,000 € 39,000,000 €6,000,000 € 94,000,000 € 17,000,000 € 200,000,000 € 50,000,000 €450,000,000 €80,000,000 € 70,000,000 €60,000,000 € 103,000,000 € 40,000,000 € 100,000,000 € 18,000,000 €62,000,000 Financial Account Direct Investment Portfolio investments Other Investment Subtotal Instructions Given the following list of transactions for France, calculate the current account and capital account surplus/deficits).

Answer 1

karies Current Alle CELL Current Account is a account which records hall transactions relating to export and import of goods and sevices and unilateral transe Scannedy dit Cams during a given period of time

capital. Ale Neuest capital account is a account which records - fall the brand transaction between the residents - of a countery and rest of the other countries, which implies a change in the assets/ liabilities of the residents of the country or its government. represent the claims and liabilities of financial lucetuse the LCS CamScanner

0 Balance of Payment anunt Account llonsciction during 2016 همسك عمملمعمك به french Condumes buy clothes french retaillons import toys (200,oo good 14. (5.0copool i b.) Unilateral transfer fo) france dend Chilotowal.aids 2 Fransfer fuan france (2000x000.75000.000) co factor income to Haile, (18,000.00) 7000,000) so I Middle East countries deposits ___17,000,000 s pregut o french anvestor receive dividend. Booooooo Leon French Invester nccive Intrust 103,000,000 i frunch trubway pays entrust to foreig (100,000,000) v.) Socken pays dividend a loved (6000000)

181000,000 Defuiet of current Account Scanner csanned with

Capital Account a) Direct Investment Reagent Builds a Plant. Testou fachada Serisolé Arcachd steck Danone, Builds a production facility 39poppoo Spegeco 94000,000 - Eropeo bo). Poselfolio Investment 1.) Trezestore lucechase Sanofi (french) Stock L & Sell of frunch Trusway Bonds ius) Hechose q Yeu denonimated bonds 7 ) Purchase of Tesla shares 2,000 (60 poopoo) (49.000.000) to other Investment 62000,000 450,000,000 6 Du South African Co Buys Insurance a sell of ou to Gas retailler Surplus 623.009.000 WA