International investment position
What is Denmark’s international investment position? The capital account is called the international investment position when Denmark’s financial assets abroad exceed foreign-owned financial assets in Denmark. Conversely, the capital account is called the foreign debt when foreign-owned financial assets in Denmark exceed Denmark’s financial assets abroad.
Explainer on…
The capital account is a statement of financial assets abroad and foreign-owned financial assets in Denmark.
When Denmark's financial assets abroad exceed foreign-owned financial assets in Denmark, the capital account is called the international investment position.
A financial asset means one of the following assets: - Cash - A contractual right to receive cash or another financial asset from another party - A contractual right to exchange financial instruments with another party on potentially favourable terms; or - An ownership instrument of another party.
Is a contractual obligation to - provide cash or another financial asset to another party, or - exchange financial instruments with another party on potentially unfavourable terms
Is for each sector calculated as assets minus liabilities.