When an Australian buys stock in a French company, from the perspective of Australia this is a(n):
A)import
B)export
C)balance on merchandise trade
D)capital outflow

Question

Quizplus · Accepted Answer

When an Australian buys stock in a French company, it involves the transfer of capital from Australia to France, which is a capital outflow. It is not an import or export of goods, nor does it affect the merchandise trade balance.

When an Australian Buys Stock in a French Company, from the Perspective