If net capital outflow is positive, then:

When net capital outflow is positive, it means that the country is investing more overseas than it is receiving from foreign investments. This situation typically arises when domestic savings exceed domestic investments, leading to a surplus of savings that seeks higher returns in foreign markets.

In the context of international trade, a positive net capital outflow corresponds to a trade balance that is typically negative. This is because the capital that is flowing out tends to be related to greater imports than exports. However, if we consider the components closely, when a country has positive net capital outflow, it might also suggest that domestic consumers and businesses are buying more foreign goods, which generally increases imports.

It's important to understand that the trade balance, defined as exports minus imports, being negative aligns with the capital outflow. Essentially, a positive net capital outflow and a negative trade balance reflect a country that is investing more abroad while simultaneously consuming more foreign goods than it sells abroad. Therefore, when net capital outflow is positive, one can conclude that the trade balance must be negative, making that particular statement the correct interpretation of the relationship.