The establishment of Japanese automakers' branch plants in Canada does not help the U.S.in terms of its _________________.
A)Current account
B)International accounts
C)National account
D)Foreign Currency account
E)Balance of payments accounts

Question

Quizplus · Accepted Answer

The establishment of Japanese automakers' branch plants in Canada may impact the Balance of payments accounts of the US. This is because the production of automobiles in Canada in collaboration with Japanese companies will result in an increase in Canadian exports and a decrease in imports, which may affect the US trade balance with Canada. The Balance of payments accounts record all the international transactions of a country and are comprised of the current account, capital account, and financial account. Therefore, the establishment of Japanese automakers' branch plants in Canada may not directly impact the other options listed in the question.

The Establishment of Japanese Automakers' Branch Plants in Canada Does