Final answer:
The statement is true. When a foreign company like Toyota buys stock in an American corporation like Hilton Hotels, it represents an inflow of foreign capital into the United States.
Step-by-step explanation:
The statement is true.
Net capital outflow refers to the difference between a country's exports of goods, services, and assets and its imports of goods, services, and assets.
When Toyota, a foreign company, buys stock in Hilton Hotels, an American corporation, it represents an inflow of foreign financial capital into the United States. This increases the country's net capital inflow and decreases net capital outflow.