I guess I'm just confused about the terms used.
So classic example;
An American firm sells electronics to Brazil.
So the American firm gets paid in Brazilian currency.
The U.S.' net export rises (logical), but since XN=NOC, so does the net outflow of capital.
Since money is going into the U.S. (The U.S. firm is now richer in terms of money), why is it called the OUTflow of capital?
I can accept it, I suppose, but it just seems strange.
So classic example;
An American firm sells electronics to Brazil.
So the American firm gets paid in Brazilian currency.
The U.S.' net export rises (logical), but since XN=NOC, so does the net outflow of capital.
Since money is going into the U.S. (The U.S. firm is now richer in terms of money), why is it called the OUTflow of capital?
I can accept it, I suppose, but it just seems strange.