Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increase in net capital outflow, or a decrease in net capital outflow for the United States.

a. An American buys a Sony TV.
b. An American investor buys a controlling share in a South Korean electronics firm.
c. The Sony pension fund buys a bond from the U. S. Treasury.
d. A South Korean tourist buys some Sunkist oranges from an American farmer.

a. Decrease in Net Exports

b. Increase in Net Capital

c. Decrease in Net Capital.

d. Increase in Net Exports

Explanation:

a. A Decrease in Net Exports

Net Exports is Exports - Imports. In buying a Television from a foreign company, the American has imported the good. This will reduce Net Exports by the aforementioned formula.

b. An INCREASE in NET CAPITAL OUTFLOW

This is essentially Capital being invested in other countries. It increases when more is invested in other countries as opposed to less.

c. A DECREASE in NET CAPITAL OUTFLOW.

As previously stated, Net Capital Outflow increases when a country invests more in another country. Since we are looking at it from the perspective of the USA, Sony, which is not an American company, buying into such capital is considered a Decrease in Net Capital Outflow as money is coming into the US.

d. An INCREASE in NET EXPORTS

Here, a foreigner is buying goods in the USA. That translates to Export. And by the Net Export Equation, Net Exports will rise.

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muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.