If a nation is selling more goods and services to foreigners than it is buying from them, then on net it must be selling assets abroad.

Question

Quizplus · Accepted Answer

If a nation is selling more goods and services to foreigners than it is buying from them, it has a trade surplus, not necessarily selling assets abroad. This means it is earning more from exports than it spends on imports, which can increase its foreign reserves or be invested in foreign assets, but doesn't imply a net sale of domestic assets to foreigners.

If a Nation Is Selling More Goods and Services to Foreigners