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