For Each of the Following Transactions,explain What Happens to the Merchandise

question 2

Essay

For each of the following transactions,explain what happens to the merchandise trade balance,current account balance,and capital and financial account balance in both the United States and Mexico.The exchange rate is 2 Mexican pesos per U.S.dollar.
(a)A Mexican firm spends 4 million pesos to buy radiology equipment from a U.S.firm.
(b)A U.S.firm buys 20,000 sombreros at 20 pesos each.
(c)Mexican computer firms send 200 programmers to universities in the United States,paying tuition and expenses of $3,000 each.
(d)A Mexican entrepreneur gives 50,000 pesos to the United Way of San Antonio,Texas.
(e)Mexican investors buy $10 million worth of 30-year U.S.Treasury bonds.

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Definitions:

Consistency

The quality of always behaving or performing in a similar way, or the quality of being logical and not containing any contradictions.

Special Effects

Special effects are techniques used in various media to create illusions or visual tricks, often in movies, television, and video games.

Business Presentations

Formal talks or demonstrations given in a business context to convey information, pitch ideas, or present findings to an audience.

Balanced Visual

A design principle where elements are arranged to create a sense of stability and harmony, often achieved through symmetry or thoughtful placement.