Export of capital

Capital export is when residents invest assets abroad. A distinction is made between three types of capital export: the acquisition of permanent holdings in foreign companies or real estate (direct investments), the purchase of foreign securities (portfolio investments) and the granting of loans to foreigners.

All of this increases the demands on foreign countries. However, capital exports also include when foreign debts are reduced, i.e. when liabilities decrease.

Capital exports, like capital imports, are recorded in a country's financial account, which in turn is part of the balance of payments. If the capital exports exceed the capital imports, one speaks of net capital export. The Federal Republic has traditionally been one of the major capital exporters. This is mainly due to the large surpluses in the current account. They automatically increase the demands on foreign countries.

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Further explanations for the first letter "K"