?

AP® Macroeconomics

Free Version

Upgrade subject to access all content

Moderate

Foreign Investment in the US

APMACR-4L1Y99

If a Brazilian soda company built a soda factory in Tennessee with plans to export soda back to Brazil, then in the U.S. Balance of Trade it would be recorded as

A

debit to the Current Account.

B

credit to the Current Account.

C

debit to the Capital Account.

D

credit to the Capital Account.

E

as a credit to the Capital Account and a credit to the Current account since it will produce goods for export.