The above statement is True. If a u.s. firm buys chinese toys using previously obtained chinese currency, then both u.s. net exports and u.s. net capital outflow decrease.
Capital outflow is the motion of assets out of a rustic. Capital outflow is taken into consideration undesirable as it's far often the result of political or monetary instability.
Capital outflow is an economic term describing capital flowing out of a specific economic system. Outflowing capital may be because of any number of financial or political reasons but can often originate from instability in both sphere.
Capital inflows are defined as internet purchases (difference between purchases and sales) of domestic assets by means of non-citizens. Capital outflows same internet purchases of foreign belongings by home sellers aside from the important bank.
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