only 2 questions please help!

4. We have established a relationship between net capital outflow (NCO) and the 

trade balance (net exports). During this period, is capital generally flowing into or 

out of your country (i.e., is your country a net borrower or lender in international 

capital markets)? What does this imply about your country’s rate of saving vs. 

investment, i.e., does your country save more than it invests domestically, or vice 

versa?

 

5. During the 2008 recession, many investors became concerned about the safety of 

international assets compared to US assets. What effect should this have on NCO 

in your country? How did NCO in your country change during the years 2007-

2010?