Debtor Nation

Filed Under » , ,
Dictionary Says

Definition of 'Debtor Nation'

A nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide.
Investopedia Says

Investopedia explains 'Debtor Nation'

Nations that have invested fewer resources than the rest of the world has invested in them are known as debtor nations. In 2006, The United States was the world's biggest debtor nation, posting a trade deficit of more than $61 billion and total debt of trillions of dollars.

One of the biggest contributors to America's status as debtor is the availability of inexpensive manufacturing capabilities in China, as more and more U.S.-based businesses spend vast amounts of money in China for that purpose.

Related Definitions

  • Balance Of Payments - BOP

    A record of all transactions made between one particular country and all other countries during a specified period of time. BOP compares the dollar difference of the amount of exports ...
    Read More »
  • Balance Of Trade - BOT

    The difference between a country's imports and its exports. Balance of trade is the largest component of a country's balance of payments. Debit items include imports, foreign aid, ...
    Read More »
  • Dollar Drain

    When a country imports more goods and services from another country than it exports back to the same country. The net effect of spending more money importing than is received from ...
    Read More »
    • Most Favored Nation Clause

      A level of status given to one country by another and enforced by the World Trade Organization. A country grants this clause to another nation if it is interested in increasing trade ...
      Read More »
    • Creditor Nation

      A nation with a cumulative balance of payment surplus. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest ...
      Read More »
    • Trade Deficit

      An economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.
      Read More »
    • Credit Tranche

      A system used by the International Monetary Fund (IMF) to govern its lending activities to member countries. When a member nation applies for a loan to help with balance of payment ...
      Read More »
    • Foreign Debt

      An outstanding loan that one country owes to another country or institutions within that country. Foreign debt also includes due payments to international organizations such as the ...
      Read More »
    • Debtonation

      A financial blog that documents the financial crisis that began in the late 2000s as a result of the subprime mortgage meltdown. The blog, at www.debtonation.org, is run by Ann Pettifor, ...
      Read More »
    • United Nations - UN

      An international organization formed in 1945 to increase political and economic cooperation among member countries. The organization works on economic and social development programs, ...
      Read More »

Articles Of Interest

Partner Links