Question

2. How would each item below effect the US International Investment Position (increase or decrease it)?...

2. How would each item below effect the US International Investment Position (increase or decrease it)? • Bank of America makes a loan to a company in Italy. • The central bank of Japan increases its dollar reserves. • US hotel chains build resorts in the Dominican Republic.

Homework Answers

Answer #1

Bank of America makes a loan to a company in Italy.

It will increase the US International Investment Position as a loan given to Italy will become an advance.

The central bank of Japan increases its dollar reserves

It will decrease the US International Investment Position.

US hotel chains build resorts in the Dominican Republic.

It will increase the US International Investment Position as building resort in other countries will create an investment for the US.

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