A 14-year-old girl living in Brisbane, Queensland, purchases a new GameCube game system at Target for $150. The game is manufactured by the Nintendo Co. in Tokyo. Target pays Nintendo $100 for the game system. The other $50 covers the cost of workers, rent, and profit for Target.
Nintendo exchanges the $100 at the First National Bank of Tokyo for 8,000 yen. The First National Bank of Tokyo loans the $100 to Mitsubishi, which uses it (and a lot of additional money) to expand its automobile manufacturing facility in South Australia.
Which of the following decreases the net capital outflow of Australia?
A. The exchange of $100 for 8,000 yen by Nintendo.
B. The expenditure of $100 by Mitsubishi on expanding its manufacturing plant.
C. The purchase of the GameCube system by Target.
D. None of the choices
I am guessing its D but I am not 100% sure, can somebody clarify it for me? And if I am wrong, why I am wrong as well?
Thanks
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