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Net Capital Inflows

Definition

Net capital inflows refer to the difference between the amount of capital flowing into a country and the amount flowing out. It represents the net investment from foreign sources.

Related terms

Foreign Direct Investment (FDI): FDI refers to when a company or individual from one country invests directly in another country's businesses or assets.

Trade Surplus: A trade surplus occurs when a country exports more goods and services than it imports, resulting in a positive balance of trade.

Current Account Balance: The current account balance is the sum of a country's net exports, net income from abroad, and net transfers. It reflects the overall economic relationship with other countries.

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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.