Describe the relationship between international capital flows and trade balance.

 International capital flows refer to the movement of money across national borders for the purpose of investing in foreign assets, such as stocks, bonds, and real estate. A trade balance, also known as a balance of trade, is the difference between a country's exports and imports of goods and services.

There is a relationship between international capital flows and trade balance in that capital flows can affect a country's trade balance. For example, if a country experiences a large inflow of foreign capital, it may use that capital to import more goods and services, which can lead to a trade deficit. On the other hand, if a country experiences an outflow of capital, it _____ ___ ________ _______ _________ __________ ______ __________ __________ ________ ___.
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