By itself, if a U.S. firm builds a new factroy overseas, U.S. net captial outflow rises.

Question

Quizplus · Accepted Answer

Net capital outflow refers to the difference between the amount of capital that flows from a country to foreign countries and the amount of capital that flows into the country from foreign countries. If a U.S. firm builds a new factory overseas, it is investing in a foreign country and therefore contributing to net capital outflow from the U.S.

By Itself, If a U