a-us-company-imports-75000-worth-of-goods-from-china-how-does-this-transaction-a

Question

A US company imports $75,000 worth of goods from China. How does this transaction affect US net exports and net foreign investment?

Accepted Answer

Net exports decrease by $$75,000; net foreign investment decreases by 75$$,000.

Answer

Net exports decrease by $75,000; net foreign investment remains unchanged.

Answer

Net exports increase by $$75,000; net foreign investment increases by 75$$,000.

Answer

Net exports remain unchanged; net foreign investment decreases by $75,000.

A US company imports \$75,000 worth of goods from China. How does this transaction affect US net exports and net foreign investment?