If net exports are positive
A)net foreign investment is also positive.
B)capital inflows must be greater than capital outflows.
C)net foreign investment is negative.
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Positive net exports mean that a country is exporting more goods and services than it is importing. This implies that there is a demand for the country's goods and services in foreign markets. As a result, there is likely to be an increase in net foreign investment as foreign investors invest in the country in order to take advantage of its positive trade balance.

If Net Exports Are Positive