5. Transborder environmental impacts can take place when one country\'s pollutio

Question

5. Transborder environmental impacts can take place when one country's pollution spills over into a second country in all of the following situations EXCEPT A) when an upstream user pollutes a shared watershed. B) when industrial production in one country creates acid rain in another country C) when heavy traffic between two or more countries creates semi-global warming. D) the pro?duction of exported products degrades the local environment 6. The payment of a dividend by a foreign company to an American stockholder represents A) a debit in the U.S. capital account. B) a credit in the U.S. current account. C) a credit in the U.S. official reserve account. D) a debit in the U.S. current account. Table 1 Credit 1,000 500 100 400 Debit 800 400 200 300 orts of and services Net change in assets Second Investment income income 7. Based on Table 1, the balance on the cuent account is A) +100 B)-200 C) -100 D) -200 8. Based on Table 1, the balance on the financial account is A) +100 B) +200 C) -100 D) -200

Explanation / Answer

All the other options fit in except option C because heavy traffic between 2 or more countries may create local enviornmental problem more rather than global ones.

Ans for 2)

Option D is correct answer (A debit in the US current account)

Ans for 3)

Balance on the current account is Exports Credit-Exports Debit=200

Hence option B is correct answer

Ans for 4)

Balance on the Capital account

Net changes in assets(Credit-Debit)+Secondary Income(Cre-Deb)+Investment Income(Cre-Deb)=100

Hence option A is correct

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