According to statistics of the international investment position for 2018 (Table 2), the United States was in a ____ position. The major contributor to this position was ___________.
a. creditor; direct investment
b. debtor; portfolio investment
c. creditor; portfolio investment
d. debtor; direct investment
Homework Answers
Debtor, Portfolio investment. (which is Option B)
_____
Explanation:
If the net international investment position is negative, the country is said to be a debtor nation. In the given case, the net international investment position is -$9,554,711. Therefore, the United States was in a debtor position in 2018. Based on the figures provided in the question, the value of net portfolio investment is -$7,224,392 (11,491,444-18,715,836). On the contrary, the value of net direct investment is -$979,416 (7,503,926-8,483,342). These figures indicate that the contribution of net portfolio investment to net international investment position is much greater than that of the net direct investment. Therefore, Option B is correct.
Add Answer to:
According to statistics of the international investment position
for 2018 (Table 2), the United States was...
Using the data in the “Memoranda” to Table 13-3, calculate the U.S. 2009 net international investment...
Using the data in the “Memoranda” to Table 13-3, calculate the
U.S. 2009 net international investment position with direct
investments valued at market prices.
TABLE 13-3 International Investment Position of the United States at Year End, 2008 and 2009 (millions of dollars) Changes in position in 2009 Atributable to Type of investment Postion, 2008 Valuation adjustments Position, 2009 Financial flows Price changes Exchange rate changes Other changes Total (a+b+c+d) 522,929 276,730 -216,075 50.804 -165,271 172,452 19,103 153,349 276.730 1|Net International...
Please refer to the hypothetical information below to determine the international investment position of the United...
Please refer to the hypothetical information below to determine the international investment position of the United States. Is the United States a net creditor nation or a net debtor nation? By what amount? Briefly explain. Hypothetical International Investment Position of the United States (in billions of U.S. Dollars), entries are in no particular order: Foreign official assets in the United States……………….. 25 U.S. private assets abroad…………………………………. 75 Other foreign assets in the United States………………… 225 U.S. government assets abroad…………………………… 150
Use Table 1 for net earnings (NE) information and Table 3 for net exports (X). Suppose...
Use Table 1 for net earnings (NE) information and Table 3 for
net exports (X). Suppose that the government budget deficit was
$800 billion for 2018, what was the U.S. private sector’s saving in
2018? Your answer: _______________ ($ billion) (Please round your
answer to one decimal place.)
Table 3: U.S. GDP 2018 (billions of U.S. dollars) Line 2010 2018 Gross domestic product Personal consumption expenditures 15,600.8 10,643.0 3,485.7 18,609.0 12,944.6 4,583.3 3. 4 Goods Durable goods Nondurable goods 1,027.3...
Use Table 1 for net earnings (NE) information and Table 3 for net exports (X). How...
Use Table 1 for net earnings (NE) information and Table 3 for
net exports (X). How much was the total domestic saving in the
United States?
Your answer: _______________ ($ billion) (Please round your
answer to one decimal place.)
Table 3: U.S. GDP 2018 (billions of U.S. dollars) Line 3 4 6 10 11 13 Gross domestic product Personal consumption expenditures Goods Durable goods Nondurable goods Services Gross private domestic investment Fixed investment Nonresidential Structures Equipment Intellectual property products Residential...
6. Debtors and creditors - Net international investment position Suppose that at the end of 2014,...
6. Debtors and creditors - Net international investment position Suppose that at the end of 2014, the value of U.S.-owned assets abroad is $13,755 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,295 billion. The net international investment position of the United States in 2014 is __________$ billion. (Hint: Be sure to include a negative sign if the U.S. is experiencing debt.) Suppose that in 2015, the United States runs a current...
6. Debtors and creditors - Net international investment position Suppose that at the end of 2014,...
6. Debtors and creditors - Net international investment position Suppose that at the end of 2014, the value of U.S.-owned assets abroad is $15,888 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,953 billion. The net international investment position of the United States in 2014 is 5 experiencing debt.) billion. (Hint: Be sure to include a negative sign if the U.S.is Suppose that in 2015, the United States runs a current account...
If there are two countries you are considering for foreign direct investment that are similar in...
If there are two countries you are considering for
foreign direct investment that are similar in most
respects and only the balance of payments differintiates them,
what are the top 3 items you would look for
specifically and why these are important for the current and future
success of your FDI. Not general accounts or categories Keep in
mind the CEO has a marketing background, so you want to fully
explain all international finance concepts.
Balance of Payments A. Current...
2. On February 1, 2018, Henry Corporation purchased 200,000 shares of Glover, Inc., common stock for...
2. On February 1, 2018, Henry Corporation purchased 200,000 shares of Glover, Inc., common stock for $5,400,000. The investment represents a 40% interest in the net assets of Glover and gave Henry the ability to exercise significant influence over Glover's operations On September 30, 2018, Henry received dividends of $1.00 per share on the Glover investment. Glover reported net income of $300,000 for the year ended December 31, 2018. The market value of the Glover stock was $30 per share...
Under the United States Generally Accepted Accounting Standards (U.S. GAAP), property, plant and Equipment are reported...
Under the United States Generally Accepted Accounting Standards (U.S. GAAP), property, plant and Equipment are reported at historical cost net of accumulated depreciation. These assets are written down to fair value when it is determined that they have been impaired.Several other countries, including Australia, Brazil, England, Mexico and Singapore, permit the revaluation of property, plant and equipment to their current cost as of the balance sheet date. The primary argument in favor of revaluation is that the historical cost of...
2019 2018 Statement of financial position as at 31 December 2019 2019 2018 £000 £000 E000...
2019 2018 Statement of financial position as at 31 December 2019 2019 2018 £000 £000 E000 £000 Assets Property Plant and Equipment 13,073.00 12.570.50 (NBV) Investments 3,550.00 Current Assets Inventory 8,243.50 7.946.00 Receivables 6,173.50 4,052.00 Cash and cash equivalent 431.50 14,848.50 362.00 12.360.00 Total Assets 31.471.50 24.930..50 Equity and Liabilities Share Capital Share Premium Revaluation Reserve Retained Earnings Non Current Liabilities Current Liabilities Trade Payables and others Total Equity and liabilities 6,500.00 6,250.00 1,325.00 12.388.00 5,000.00 2,500.00 1,325.00 26,463.00 11,428.00...
Using the data in the “Memoranda” to Table 13-3, calculate the
U.S. 2009 net international investment position with direct
investments valued at market prices.
TABLE 13-3 International Investment Position of the United States at Year End, 2008 and 2009 (millions of dollars) Changes in position in 2009 Atributable to Type of investment Postion, 2008 Valuation adjustments Position, 2009 Financial flows Price changes Exchange rate changes Other changes Total (a+b+c+d) 522,929 276,730 -216,075 50.804 -165,271 172,452 19,103 153,349 276.730 1|Net International...
Use Table 1 for net earnings (NE) information and Table 3 for
net exports (X). Suppose that the government budget deficit was
$800 billion for 2018, what was the U.S. private sector’s saving in
2018? Your answer: _______________ ($ billion) (Please round your
answer to one decimal place.)
Table 3: U.S. GDP 2018 (billions of U.S. dollars) Line 2010 2018 Gross domestic product Personal consumption expenditures 15,600.8 10,643.0 3,485.7 18,609.0 12,944.6 4,583.3 3. 4 Goods Durable goods Nondurable goods 1,027.3...
Use Table 1 for net earnings (NE) information and Table 3 for
net exports (X). How much was the total domestic saving in the
United States?
Your answer: _______________ ($ billion) (Please round your
answer to one decimal place.)
Table 3: U.S. GDP 2018 (billions of U.S. dollars) Line 3 4 6 10 11 13 Gross domestic product Personal consumption expenditures Goods Durable goods Nondurable goods Services Gross private domestic investment Fixed investment Nonresidential Structures Equipment Intellectual property products Residential...
6. Debtors and creditors - Net international investment position Suppose that at the end of 2014, the value of U.S.-owned assets abroad is $15,888 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,953 billion. The net international investment position of the United States in 2014 is 5 experiencing debt.) billion. (Hint: Be sure to include a negative sign if the U.S.is Suppose that in 2015, the United States runs a current account...
If there are two countries you are considering for
foreign direct investment that are similar in most
respects and only the balance of payments differintiates them,
what are the top 3 items you would look for
specifically and why these are important for the current and future
success of your FDI. Not general accounts or categories Keep in
mind the CEO has a marketing background, so you want to fully
explain all international finance concepts.
Balance of Payments A. Current...
2. On February 1, 2018, Henry Corporation purchased 200,000 shares of Glover, Inc., common stock for $5,400,000. The investment represents a 40% interest in the net assets of Glover and gave Henry the ability to exercise significant influence over Glover's operations On September 30, 2018, Henry received dividends of $1.00 per share on the Glover investment. Glover reported net income of $300,000 for the year ended December 31, 2018. The market value of the Glover stock was $30 per share...
2019 2018 Statement of financial position as at 31 December 2019 2019 2018 £000 £000 E000 £000 Assets Property Plant and Equipment 13,073.00 12.570.50 (NBV) Investments 3,550.00 Current Assets Inventory 8,243.50 7.946.00 Receivables 6,173.50 4,052.00 Cash and cash equivalent 431.50 14,848.50 362.00 12.360.00 Total Assets 31.471.50 24.930..50 Equity and Liabilities Share Capital Share Premium Revaluation Reserve Retained Earnings Non Current Liabilities Current Liabilities Trade Payables and others Total Equity and liabilities 6,500.00 6,250.00 1,325.00 12.388.00 5,000.00 2,500.00 1,325.00 26,463.00 11,428.00...
Most questions answered within 3 hours.
-
How would you train your employees to avoid risks of using
mobile devices?
asked 17 seconds ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 57 minutes ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 1 hour ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 2 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 3 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 3 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 4 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 6 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 6 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 6 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 6 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 6 hours ago