Economics 9708 · AS & A Level · 6.3

6.3 — practice question

A car producer from Japan set up a profitable factory in France. In the Japanese balance of payments, how would this be recorded?

  • Ainvestment in the factory: negative entry in the financial account; dividends and profits from the factory: positive entry in the current account
  • Binvestment in the factory: negative entry in the current account; dividends and profits from the factory: positive entry in the financial account
  • Cinvestment in the factory: positive entry in the financial account; dividends and profits from the factory: negative entry in the current account
  • Dinvestment in the factory: positive entry in the current account; dividends and profits from the factory: negative entry in the financial account

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