Final answer:
The outflow of FDI refers to investments made by residents of one country in another, including purchasing companies or starting new enterprises. An example is the Belgian company InBev's acquisition of Anheuser-Busch, which required converting euros to U.S. dollars.
Step-by-step explanation:
The outflow of FDI refers to the value of outward direct investment made by the residents of the reporting economy to external economies. This involves purchasing a significant part of a firm or starting up a new enterprise in a foreign country. For example, when the Belgian company InBev acquired Anheuser-Busch, this was considered an outflow of FDI from Belgium to the United States. InBev needed to convert their currency, euros, into U.S. dollars to complete the transaction. These international financial capital flows also encompass buying real estate, companies, and other financial investments like stocks and bonds.