Describe numerical effect on us current and capital accounts


Problem

Explain the numerical effects on both the U.S. current and capital accounts from each of these examples.

a. In the United States, the Best Buy company purchases $1 million worth of TVs from the Samsung corporation, a Korean firm, using U.S. dollars. In addition, Samsung keeps the U.S. dollars.

b. Best Buy purchases $1 million worth of TVs from the Samsung corporation, using U.S. dollars. Samsung then trades its dollars to a third party for won, the Korean currency.

c. Best Buy trades $1 million for Korean won and then uses the won to buy TVs from Samsung.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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