Mathematics · Balance of Payments Calculation
An Indian pharmaceutical company exported goods worth $850 million and imported goods worth $420 million. During the same period, it paid $30 million in foreign royalties, received $15 million in foreign dividends, and spent $10 million on foreign shipping/insurance services. Calculate the company's contribution to Net Invisibles and the overall Current Account Balance.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Net Invisibles: -$35 million; Current Account Balance: +$395 million
- 2Net Invisibles: -$45 million; Current Account Balance: +$385 million
- 3Net Invisibles: +$15 million; Current Account Balance: +$445 million
- 4Net Invisibles: -$25 million; Current Account Balance: +$405 million✓
Correct answer
Net Invisibles: -$25 million; Current Account Balance: +$405 million
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