When people choose to invest at home it is called ________, and when they invest abroad it is called _______.
A) investment; foreign savings
B) investment; net capital outflow
C) savings; net capital outflow
D) savings; net direct investment

Question

Quizplus · Accepted Answer

When people choose to invest at home, it is considered as investment in the domestic economy and is included in the country's total investment. When people invest abroad, it is considered as a net capital outflow because it represents an outflow of domestic currency to purchase foreign assets. Therefore, option B is the most appropriate pair of terms to describe these investments.

When People Choose to Invest at Home It Is Called