Net capital outflow?

Question

A 14-year-old girl living in Brisbane, Queensland, purchases a new GameCube game system at Target for $150. The game is manufactured by the Nintendo Co. in Tokyo. Target pays Nintendo $100 for the game system. The other $50 covers the cost of workers, rent, and profit for Target.

Nintendo exchanges the $100 at the First National Bank of Tokyo for 8,000 yen. The First National Bank of Tokyo loans the $100 to Mitsubishi, which uses it (and a lot of additional money) to expand its automobile manufacturing facility in South Australia.

Which of the following decreases the net capital outflow of Australia?

A. The exchange of $100 for 8,000 yen by Nintendo.

B. The expenditure of $100 by Mitsubishi on expanding its manufacturing plant.

C. The purchase of the GameCube system by Target.

D. None of the choices

I am guessing its B but I am not 100% sure, can somebody clarify it for me? And if I am wrong, why I am wrong as well?

Thanks

Answer 1

You are right "B" is correct. Because Mitsubishi makes investment in Australia thus makes capital inflow into Australia and consequently reduces outflow.