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Suppose an Australian Citizen Buys Five Kegs of Bitburger Beer

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Essay

Suppose an Australian citizen buys five kegs of Bitburger beer from Germany.Explain what happens to the German balance of payments in each of the following scenarios:
a.Bitburger decides to keep the Australian dollars.
b.Bitburger uses the proceeds to buy an abandoned factory in America to expand its operations overseas.
c.Bitburger uses the proceeds to send relief aid to an impoverished area of Latin America.


Definitions:

Allergic Reaction

An immune system response to a foreign substance that's not typically harmful to your body, such as pollen, bee venom, pet dander, or certain foods.

Foreign Proteins

These are proteins that are recognized by the immune system as potential threats, originating outside the organism.

Hypersensitivity

An exaggerated or inappropriate immune response to a foreign substance.

Harmless Substance

A material or compound that is not likely to cause injury, damage, or disease.

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