When net capital outflow is negative, it means that on net the value of domestic assets purchased by foreigners exceeds the value of foreign assets purchased by domestic residents.

Question

Quizplus · Accepted Answer

When net capital outflow is negative, it indicates that the country is importing more capital than it is exporting. This means that foreigners are buying more domestic assets than domestic residents are buying foreign assets, leading to a net inflow of investment into the country.

When Net Capital Outflow Is Negative, It Means That on Net