If Washington takes steps to reduce or eliminate Mexico's bilateral surplus with the United States, and this causes net capital inflows into Mexico to decline, Mexico's current account deficit must decline, regardless of what happens to its bilateral surplus with the United States. (carnegieendowment.org)
After 1982, the entire region switched from large net capital inflows to large net capital outflows as foreign investment dried up, to be replaced by capital flight and the struggle to service external debt. (carnegieendowment.org)
«In particular, trade deficits are financed by net capital inflows. (businessinsider.com)