Net Capital Outflows

foreign portfolio investment and foreign direct investment both ________ Net Capital Outflows

increase

net foreign investment=

net capital outflows

foreign portfolio investment

An American buys stock in a Russian corporation

foreign direct investment

McDonald's opens up a store in Russia

Net exports<0 in a

Trade deficit

Net exports > 0 in a

Trade surplus

Net Capital Outflow = 0 in a

trade balance

Y = C+ I + G

trade balance

saving = investment

trade balance

saving = investment in a

trade balance

Net Capital outflow < 0 in a

trade deficit

Y < C + I + G

trade deficit

saving < investment

trade deficit

saving < investment in a

trade deficit

Net Capital outflow > 0 in a

trade suprlus

Y> C + I + G in a

trade surplus

saving > investment

trade surplus

saving > investment in a

trade surplus