When an Australian exporter sells software to France and uses the proceeds to buy stock in a French company, Australian exports _____ and there is a capital _____ to/from Australia.[Fill in the blank]单项选择题
A
a. increase; outflow
B
b. increase; inflow
C
c. decrease; inflow
D
d. decrease; outflow

Question

When an Australian exporter sells software to France and uses the proceeds to buy stock in a French company, Australian exports _____ and there is a capital _____ to/from Australia.[Fill in the blank]

BlackTom AI · Accepted Answer

Australian exports increase because the sale of software to France is an export of a service; the subsequent purchase of French stock with the proceeds is a capital outflow from Australia.

1) Relevant knowledge points and concepts
- Exports: goods and services sold by residents to foreign buyers increase the exports component of the balance of payments current account. A sale of software to a French buyer is an export of services from Australia.
- Financial (capital) account: purchases of foreign assets by domestic residents are recorded as capital outflows (a debit in the financial account). Conversely, foreign purchases of domestic assets are capital inflows.
- Double-entry bookkeeping of the balance of payments: an export generates a credit in the current account; if the exporter uses the foreign currency or proceeds to buy a foreign asset, that purchase shows up as a capital/financial account outflow.

2) Step-by-step reasoning
Step 1: Australian exporter provides software to a French purchaser → this is an export of services by Australia. Effect: Australian exports increase (current account credit).
Step 2: The exporter receives payment (foreign currency or via bank transfer) from France. Rather than converting and keeping funds in Australia, the exporter uses the proceeds to purchase stock in a French company.
Step 3: The purchase of foreign stock by an Australian resident constitutes an outflow of capital from Australia to France → recorded as a capital/financial account debit (capital outflow).

3) Intermediate logical steps (accounting view)
- Current account: + export (software) → increases exports.
- Financial account: − purchase of foreign asset by resident → capital outflow.

4) Why the correct answer is correct
Because the transaction has two distinct parts: (a) export of a service (raises exports), and (b) acquisition of foreign equity by an Australian resident (creates a capital outflow).

5) Why the other options are incorrect
- b (increase; inflow): incorrect because buying foreign stock is an outflow, not an inflow.
- c and d (decrease ...): incorrect because the export does not decrease exports; it increases them.

Conclusion: The correct choice is a. increase; outflow, which matches the provided answer.

When an Australian exporter sells software to France and uses the proceeds to buy stock in a French company, Australian exports _ and there is a capital _ to/from Australia.[Fill in the blank]单项选择题

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When an Australian exporter sells software to France and uses the proceeds to buy stock in a French company, Australian exports _____ and there is a capital _____ to/from Australia.[Fill in the blank]单项选择题

类似问题

The account showing financial transactions like stocks and bonds is the:

When an Australian oil company purchases oil from Singapore and the Singaporean firm uses the proceeds from its sale of oil to Australia to buy Australian government debt, Australian _____ and there is a capital _____ to/from Australia.[Fill in the blank]

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The elasticity, absorption, and monetary approaches are about how:

The elasticity, absorption, and monetary approaches are about how:

Which is true regarding the monetary approach?

Which is true regarding the absorption approach?

更多留学生实用工具

希望你的学习变得更简单

When an Australian exporter sells software to France and uses the proceeds to buy stock in a French company, Australian exports _ and there is a capital _ to/from Australia.[Fill in the blank]单项选择题

When an Australian oil company purchases oil from Singapore and the Singaporean firm uses the proceeds from its sale of oil to Australia to buy Australian government debt, Australian _ and there is a capital _ to/from Australia.[Fill in the blank]