Final answer:
Achieving both a trade surplus and a healthy inflow of capital is generally economically impossible because a trade surplus implies a capital outflow and vice versa, in order to maintain a balance in the balance of payments.
Step-by-step explanation:
Occasionally, a government official may claim that a country should aim to achieve both a trade surplus and a strong inflow of capital from abroad. However, these objectives are generally economically incompatible due to the balance of payments accounting, which ensures that a country's transactions with the rest of the world are kept in balance. When a country has a trade surplus, it means it exports more than it imports. Consequently, the country is essentially sending out its goods in exchange for foreign currency, leading to a net outflow of capital.
On the other hand, when there is an inflow of capital, foreigners are investing in the country, which means the country imports capital but also tends to import goods and services, potentially resulting in a trade deficit. The balance of payments must always balance, so a trade surplus (a current account surplus) is offset by a corresponding capital account deficit, and vice versa. That is, if a country has more money coming in from its exports than it is spending on imports (trade surplus), it must be investing more abroad than what others are investing in it (capital outflow).
To summarize, due to the mechanisms of international trade and capital flows, striving for both a trade surplus and a substantial capital inflow typically cannot occur simultaneously as one will offset the other in the balance of payments.