Answer: A country that is borrowing more from the rest of the world than it is lending to the rest of the world is a net borrower. A country that is lending more to the rest of the world than it borrows from the rest of the world is a net lender. A country that during its entire history has borrowed more from the rest of the world than it has lent to the rest of the world is a debtor nation. A country that has invested more in the rest of the world than other countries have invested in it is a creditor nation. A net borrower is a country that is currently borrowing whereas a debtor nation has a stock of outstanding debt. Borrowing is a flow variable and the outstanding debt is a stock. Thus a net borrower could be a creditor nation that is currently borrowing or it could be a debtor nation that is currently borrowing and thereby increasing its debt.
Net borrower: A country that is borrowing more from the rest of the world than it is lending to the rest of the world. Net lender: A country that is lending more to the rest of the world than it is borrowing. A debtor nation: a country that during its entire history has borrowed more from the rest of the world than it has lent to it. A creditor nation: a country that during its entire histroy has invested more in the rest of the world than other countries have intvested in it. The difference between a net borrower and a debtor nation is a net borrower is currently borrowing, while a debtor nation is in debt for continuously borrowing.
Answer: A country that is borrowing more from the rest of the world than it is lending to the rest of the world is a net borrower. A country that is lending more to the rest of the world than it borrows from the rest of the world is a net lender. A country that during its entire history has borrowed more from the rest of the world than it has lent to the rest of the world is a debtor nation. A country that has invested more in the rest of the world than other countries have invested in it is a creditor nation. A net borrower is a country that is currently borrowing whereas a debtor nation has a stock of outstanding debt. Borrowing is a flow variable and the outstanding debt is a stock. Thus a net borrower could be a creditor nation that is currently borrowing or it could be a debtor nation that is currently borrowing and thereby increasing its debt.
ReplyDeleteNet borrower: A country that is borrowing more from the rest of the world than it is lending to the rest of the world.
ReplyDeleteNet lender: A country that is lending more to the rest of the world than it is borrowing.
A debtor nation: a country that during its entire history has borrowed more from the rest of the world than it has lent to it.
A creditor nation: a country that during its entire histroy has invested more in the rest of the world than other countries have intvested in it.
The difference between a net borrower and a debtor nation is a net borrower is currently borrowing, while a debtor nation is in debt for continuously borrowing.