Final answer:
Net cash flows from investing activities are the difference between cash inflows and outflows in investing. In an international context, it relates to foreign capital inflow and other sources such as private investment and government borrowing.
Step-by-step explanation:
Net cash flows from investing activities represents the difference between the inflows and outflows of cash from investing activities.
This is an important metric within a company's cash flow statement, used to gauge the financial health of an organization.
In the context of international finance, this would include consideration of the inflow of foreign financial capital, such as savings from abroad which correlate with a trade deficit defined as imports (M) minus exports (X). Additionally, it's worth noting the two main sources of demand for financial capital which are private sector investment (I) and government borrowing.
Government borrowing specifically relates to budget deficits, which are the difference between government spending (G) and net taxes (T).