U.S- based Dell sells computers to an Irish company that pays with previously obtained U.S.currency.This exchange
A)increases U.S.net capital outflow because the U.S.acquires foreign-owned assets.
B)decreases U.S.net capital outflow because the U.S.acquires foreign-owned assets.
C)increases U.S.net capital outflow because the U.S.sells capital goods.
D)decreases U.S.net capital outflow because the U.S.sells capital goods.

Question

Quizplus · Accepted Answer

When Dell sells computers to an Irish company and receives payment in U.S. currency, the U.S. acquires foreign-owned assets (the currency), which increases U.S. net capital outflow.

US- Based Dell Sells Computers to an Irish Company That