Borrowers and Lenders

  1. Home
  2. /
  3. Borrowers and Lenders

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.

 

Links of Previous Main Topic:-

Links of Next Macroeconomics Topics:-

Submit Homework

Click or drag files to this area to upload. You can upload up to 10 files.
Max upload size: 50 MB/file
Click or drag files to this area to upload. You can upload up to 10 files.
Max upload size: 50 MB/file

How It Works

Customer Reviews

Ratings based on 510 customer reviews.
Trustpilot Ratings
Google Ratings
Share This