If foreigners increase their ownership of U.S.assets,this would help to offset:

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Foreigners increasing their ownership of U.S. assets would lead to an increase in U.S. capital inflows, which would help to offset a deficit in the U.S. current account. The current account measures the flow of goods, services, and transfers into and out of a country, while the capital account measures the flow of financial investments. A deficit in the current account means that a country is importing more than it is exporting and is therefore borrowing from abroad to finance its consumption. An increase in foreign ownership of U.S. assets would represent a capital inflow, which is a positive item on the capital account and would help to finance the current account deficit.

If Foreigners Increase Their Ownership of U