Question

Which of the following would impact the US balance on goods?
Select the correct answer below:
The UK provides the US with military support.
A German citizen studies in a US online degree program
A US consumer buys a car made in Germany.
A US investor receives dividend payments for an investment in an Australian company.

Answer 1

US balance on goods get impacted when there is either export of goods by United States or the impoprt of goods by United States or both.

When a US resident buys a good manufactured in foriegn country then this implies import of good and thus impacts the US balance on goods.

So, when a US consumer buys a car made in Germany then this transaction will impact the US balance on goods.

Hence, the correct answer is the option (3) [A US Consumer buys a car made in Germany].