If, due to political turmoil, Russian investors decide to buy more UK assets instead of Russian ones, what is the impact on the UK's net foreign investment?

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The UK's net foreign investment remains the same since only UK citizens can influence it.The UK's net foreign investment increases.The UK's net foreign investment decreases.None of the statements above are correct.

Explanation

When foreign investors purchase more UK assets, it means the UK is receiving capital inflows, which reduces the net foreign investment balance (net foreign investment = UK investment abroad minus foreign investment in the UK). Therefore, UK net foreign investment declines.