In a given year, U.S. investors purchased $60 billion in foreign assets, and for

Question

In a given year, U.S. investors purchased $60 billion in foreign assets, and foreigners purchased $100 billion in U.S. assets such as stocks and Treasury bills. In addition, U.S. businesses invested $140 billion in foreign factories and operations, while foreign companies invested $90 billion in U.S. factories and operations. What was the net capital outflow for the United States?

Instructions: Enter your answer as a whole number and include a negative sign if necessary.

The net capital outflow for the United States was $__ billion.

Explanation / Answer

U.S. investment in foriegn securities = $ 60 Billion + $ 140 Billion = $ 200 Billion

Foriegn Investment in U.S Securities = $ 100 Billion + $ 90 Billion = $ 190 Billion

Net Capital Outflow = U.S. investment in foreign securities - Foriegn investment in U.S. securities = $ 200-190 Billion = $ 10 Billion

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