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What are net capital outflows? Provide two definitions of net capital outflows.

What are net capital outflows? Provide two definitions of net capital outflows.

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Answer #1

Net capital outflow basically means how much country is investing compare to other countries investing in country itself . There are basically two type of Net capital outflow i.e Positive Net capital outflow and negative Net capital outflow .

Positive Net capital Outflow =Positive Net capital Outflow means  country is investing more abroad than the world is investing in it.

Negative Net capital Outflow =Negative Net capital Outflow means world is investing more in country  than the country is investing in world .

In other words , Net capital outflow is invested abroad by a country during a certain period of time.

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