How does Australia's foreign investment inflow compare to its outflow?

Australia's foreign investment inflow being greater than its outflow highlights a net capital inflow scenario. The country's economy has historically attracted significant foreign direct investment (FDI) due to its stable political environment, strong legal system, and abundant natural resources, making it appealing for overseas investors. This inflow supports economic growth, creates jobs, and enhances productivity through the infusion of foreign capital and expertise.

The reason the correct answer identifies inflows as being greater is tied to the larger amounts of foreign investment targeting various sectors such as real estate, mining, and infrastructure. It indicates that Australia is positioned as a favorable destination for international investors, even though it does engage in substantial outflows through Australian companies investing abroad. However, these outflows generally are not on par with the robust foreign investments coming into the country. Thus, the selection underscores Australia's role as a net receiver of foreign capital while acknowledging that Australian firms also invest abroad, albeit in lesser amounts relative to the influx from foreign entities.