An Indian multinational company earns profits from its factories operating in the UK. It then acquires a firm in the UK that is owned by a US company. How will these transactions be shown in India’s balance of payments?
- 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