A country is a net borrower when it is running a deficit and is also known as a capital importing country. For example, a country might acquire capital by selling debt instruments such as bonds to international investors or to its own residents.
This is not considered good or bad for a country. If a country has a capital inflow then the international community feels it’s a safe place to invest. Also capital inflows potentially allows for future levels of productivity that would otherwise be unattainable.
Net borrowers will be worse off when interest rates go up if their borrowing rates are not fixed.
Investment dictionary. Academic. 2012.
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