An Indian multinational earns profits from factories located in the UK. It then acquires a UK-based firm owned by a US company. In India’s balance of payments, how would these two transactions be recorded?
- Athe remittance of profit: a credit item in the current account; the purchase of the US-owned firm: a debit item in the financial account
- Bthe remittance of profit: a credit item in the financial account; the purchase of the US-owned firm: a debit item in the current account
- Cthe remittance of profit: a debit item in the current account; the purchase of the US-owned firm: a credit item in the financial account
- Dthe remittance of profit: a debit item in the financial account; the purchase of the US-owned firm: a credit item in the current account