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If domestic residents of other countries purchase $600 billion of U.S. assets and U.S residents purchase $500 billion of foreign assets, then U.S. net capital outflow is

-$100 billion and the U.S. has a trade deficit.

Which of the following is an example of U.S. foreign direct investment?

A U.S. citizen builds and operates a coffee shop in the Netherlands

Imports

Foreign-produced goods and services that are purchased domestically are called

When Jamie, a U.S. citizen, purchases a wool jacket made in Ireland, the purchase is

a U.S. import and an Irish export.

A country sells more to foreign countries than it buys from them. It has

a trade surplus and positive net exports

Paine Pharmaceuticals produces medicines in the U.S. Its overseas sales

are an export of the U.S. and increase U.S. net exports

Net capital outflow is defined as the purchase of

foreign assets by domestic residents minus the purchase of domestic assets by foreign residents.

Net capital outflow

is always equal to net exports

the real exchange rate between U.S. and Belgian goods would be higher if

prices in the U.S. were higher, or the number of euro the dollar purchased were higher.