Question

For each of the items below, determine if it is an import, an export, income, or a transfer. Place each item in the corresponding bin. Assume that the United States is the domestic country. Import = Export = Income = TRansfer= - Jim, an NYU student, studied abroad at the University of Barcelona this summer. While there, he worked part-time at the college's bookstore. - Rhode Island-based Joe's Lobster Shack hires Villagebank (a London investment bank) to handle its initial public offering (IPO). - Dennis lives and works in San Diego. He uses his holiday bonus to buy an Italian handbag for his wife. - Svetlana works at Coke headquarters in Atlanta. She sends 10% of her salary to her parents in Bulgaria. - Ohio Tech University pays $30 million in stipends to its international students. - Nancy is a U.S. citizen. She earned S800 in dividends last year from her investment portfolio of European shipping companies. - Scotland send $50 million to help the New Jersey Hurricane Relief Program. - Chicago-based Boeing, sells 12 new aircraft to Beijing Airlines.

Answer 1

In this scenario, we determine whether each item is an import, an export, income, or a transfer. Examples include Jim studying abroad (export of services), Dennis buying an Italian handbag (import), and Nancy earning dividends from her investment portfolio (income).

Step-by-step explanation:

In this scenario, we need to determine whether each item is an import, an export, income, or a transfer. Let's go through each item:

1. Jim: Jim studying abroad and working part-time at the college bookstore in Barcelona is considered an export of services, as he is providing his labor abroad.
2. Joe's Lobster Shack: Joe's Lobster Shack hiring Villagebank to handle its IPO is considered an export of services, as Villagebank is providing a service to the company.
3. Dennis: Dennis using his holiday bonus to buy an Italian handbag for his wife is an import, as the handbag is being purchased from abroad.
4. Svetlana: Svetlana sending money to her parents in Bulgaria is a transfer, as it is money being sent abroad.
5. Ohio Tech University: Ohio Tech University paying stipends to international students is an export of services, as the university is providing a service to the students.
6. Nancy: Nancy earning dividends from her European shipping companies investment portfolio is an income received from abroad.
7. Scotland: Scotland sending money to help the New Jersey Hurricane Relief Program is a transfer.
8. Boeing: Boeing selling aircraft to Beijing Airlines is an export of goods, as the aircraft are being sold abroad.