Answer
Net exports are the difference between the goods brought into a country and the goods shipped out of the country.
Net capital outflow is the difference between the purchases of foreign assets by domestic residents and domestic assets purchased by foreigners.
Work Step by Step
Accounting rules state that, for an economy as a whole, the net capital outflows must equal net exports.
If a country imports 10 dollars of goods and exports 25 dollars of goods, then the country has net exports of 15 dollars. By this accounting rule, the country also has a net capital outflow of 15 dollars.
