Question

Since 1980 U.S. net capital outflow has been a. positive, meaning that Americans were buying more capital assets abroad than foreigners were buying from the United States. b. negative, meaning that Americans were buying more capital assets abroad than foreigners were buying from the United States. c. positive, meaning that foreigners were buying more capital assets from the United States than Americans were buying abroad. d. negative, meaning that foreigners were buying more capital assets from the United States than Americans were buying abroad.

Answer 1

Answer: Option (a) is correct.

Step-by-step explanation:

Net capital outflow is flow of funds that are invested by the home country in the foreign country.

Positive net capital outflow means that a home country invests in the foreign country more than the foreign country invest in the home country.

In this question, Americans were purchasing more capital assets in the foreign countries than foreigners were buying from the United States.

Net capital flows is one of the two components that are showing the country's economic and financial collaboration with the other countries.