From an economical standpoint the country which lends more money than it borrows from the rest of the world it is called the net lender. Similarly the country that borrows a larger share than it lends to the others is termed the borrower. To give current examples China, Japan and Saudi Arabia which is rich in oil reserves can be studied as net lenders. In fact out of the $400 million debt that America took from the world in recent years China was the principle lender on most of it. Hence one can state America as an example of borrower. This became the case for USA since the 1970s and it has not been able to regain itself since. The capital account deficits as well as the loss of surplus value and the recessions which do not leave the country to rest have led to this situation.
China actually contributed most of this amount.
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- Definition of Economics
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- Market Equilibrium
- Employment and Unemployment
- Measuring GDP and Economic Growth
- Economic Growth Macroeconomics
- The Exchange Rate and the Balance of Payments
- The Foreign Exchange Market
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