A US Mutual Fund Uses $1 Million to Buy Yen from from a Japanese

question 24

Essay

A U.S. mutual fund uses $1 million to buy yen from a Japanese bank. It then uses these yen to buy stocks in a Japanese electronics firm. The Japanese electronic firm then exchanges the $1 million dollars of yen for dollars from a U.S. bank. It uses these dollars to buy equipment manufactured by a company located in the U.S.
As a result of these exchanges, by how much, if at all, and in which direction does:
A. U.S. net exports change?
B. U.S. net capital outflow change?

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Definitions:

Inbound-Related Factors

Elements that influence the receiving side of operations, such as supplier performance, quality of materials, and logistics efficiency in the supply chain.

Final Consumer

The final consumer is the end user of a product or service who does not intend to sell the product or service but instead uses it for personal, household, or family purposes.

Supplier's Supplier

Refers to the provider of goods or services to another supplier in the supply chain hierarchy, highlighting the multi-tiered nature of supply chains.

External Role

The influence or responsibility an organization or individual has outside of their immediate internal environment, impacting wider community or industry.