International Transaction
The export of merchandise goods such as trucks, machinery, computers, telecommunications equipment, and so forth is obviously an international transaction. Imports such as French wine, Japanese cameras, and German automobiles are also clearly international transactions. But this merchandise trade is only a portion of the thousands of different international transactions that occur in the United States or any other country each year.
Many other international transactions are not so obvious. The purchase of a glass figure in Venice, Italy, by a U.S. tourist is classified as a U.S. merchandise import. In fact, all expenditures made by U.S. tourists around the globe for service (meals, hotel accommodations), but not for goods, are recorded in the U.S. balance of payments as imports of travel services in the Current Account. The purchase of a U.S. Treasury bill by a foreign resident is an international financial transaction and is duly recorded in the Capital/Financial Account of the U.S. balance of payments.
More from this Section
- Air Freight Consolidator
Air Freight Consolidator is an air freight carrier that does not own or operate its own ... - UCP 600
UCP 600 means uniform Customs and Practice for Documentary Credits, ICC Publication No. ... - American Depositary Receipt (ADR)
American Depositary Receipt (ADR) is a certificate of ownership, issued by a U.S. bank, ... - Foreign Exchange Brokers
Foreign exchange brokers are agents who facilitate trading between dealers without themselves ... - Expenditure multiplier
Expenditure multiplier is the ratio of a change in aggregate output to a change in investment ...