How does foreign saving in a country relate to the country's trade balance?

Question

Quizplus · Accepted Answer

Foreign saving in a country is essentially the amount by which a country's investment exceeds its domestic saving. This is mathematically equivalent to the country's trade deficit (or negative trade balance), where imports exceed exports. Therefore, foreign saving is equal to negative one times the trade balance, indicating that a positive trade balance (or surplus) would correspond to negative foreign saving, and a trade deficit would correspond to positive foreign saving.

How Does Foreign Saving in a Country Relate to the Country's