<p>One is a stock another is a flow.</p>
<p><a href="https://www.investopedia.com/terms/n/net-foreign-assets-nfa.asp" rel="nofollow noreferrer">Net Foreign Assets are</a>:</p>
<blockquote>
<p>Net foreign assets (NFA) determines whether a country is a creditor or debtor nation by measuring the difference in its external assets and liabilities. Net foreign assets (NFA) refer to the value of overseas assets owned by a nation, minus the value of its domestic assets that are owned by foreigners, adjusted for changes in valuation and exchange rates.</p>
</blockquote>
<p><a href="https://www.investopedia.com/terms/f/foreign-investment.asp" rel="nofollow noreferrer">Net Foreign Investment</a> is:</p>
<blockquote>
<p>Foreign investment involves capital flows from one country to another, granting the foreign investors extensive ownership stakes in domestic companies and assets.</p>
</blockquote>

CC BY-SA 4.0
2020-11-18T16:08:09.503Z
2020-11-18T16:08:09.503Z
csilvia
<p>How does Net Foreign Assets (NFA) differ from Net Foreign Investment (NCO)? Yes, the former counts assets, and the latter counts investment, but I can't quite wrap my head around the difference.</p>

CC BY-SA 4.0
2020-11-18T12:38:53.283Z
It depends on what the user intends, but one possibility is that for country A, its net foreign assets is the value of the stock of its (and its citizens' and companies') assets overseas minus its (etc.) liabilities to foreigners, while net foreign investment *might* be used to mean the net flows in the financial account of the Balance of Payments (old-fashioned people call this the capital account).  But others might confuse the two
Henry
<macroeconomics>
How does Net Foreign Assets (NFA) differ from Net Foreign Investment (NCO)?
user31270
# How does Net Foreign Assets (NFA) differ from Net Foreign Investment (NCO)?

(Asked by: username_0 on 2020-11-18)

How does Net Foreign Assets (NFA) differ from Net Foreign Investment (NCO)? Yes, the former counts assets, and the latter counts investment, but I can't quite wrap my head around the difference.

**Tags:** macroeconomics

> **Comments:**
> **username_1**: It depends on what the user intends, but one possibility is that for country A, its net foreign assets is the value of the stock of its (and its citizens' and companies') assets overseas minus its (etc.) liabilities to foreigners, while net foreign investment *might* be used to mean the net flows in the financial account of the Balance of Payments (old-fashioned people call this the capital account).  But others might confuse the two  

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## 1 answers

### Answer by username_2 on 2020-11-18. Score: 2

One is a stock another is a flow.

[Net Foreign Assets are](https://www.investopedia.com/terms/n/net-foreign-assets-nfa.asp):

> Net foreign assets (NFA) determines whether a country is a creditor or debtor nation by measuring the difference in its external assets and liabilities. Net foreign assets (NFA) refer to the value of overseas assets owned by a nation, minus the value of its domestic assets that are owned by foreigners, adjusted for changes in valuation and exchange rates.

[Net Foreign Investment](https://www.investopedia.com/terms/f/foreign-investment.asp) is:

> Foreign investment involves capital flows from one country to another, granting the foreign investors extensive ownership stakes in domestic companies and assets.


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