In 2019, Canadian investors purchased $50 billion in foreign assets, and foreigners purchased $100 billion in Canadian assets such as stocks and Treasury bills

Economics Apr 19, 2021

In 2019, Canadian investors purchased $50 billion in foreign assets, and foreigners purchased $100 billion in Canadian assets such as stocks and Treasury bills. In addition, Canadian businesses invested $150 billion in foreign factories and operations, while foreign companies invested $100 billion in Canadian factories and operations. What was the net capital outflow for Canada?

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

The net capital outflow for canada was $ billion.

Expert Solution

Computation of Net Capital Outflow for Canada:

Investment by Canada = $50 billion + $150 billion = $200 billion

Investment in Canada = $100 billion + $100billion = $200 billion

So,

Net Capital Outflow= $200 billion - $200 billion = 0

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