Net Capital Outflow (NCO) is one of two major methods of determining the nature of a country's foreign trade (the other being the
current account balance). NCO is the quantity of foreign
assets held by residents of a given country minus the quantity of domestic assets in that country held by foreigners. A positive NCO means that the nation invests outside more than the world invests in it; a negative one, that the world invests in the country more than the country invests in the world.
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