Final answer:
The United States has a trade deficit, making it a net borrower, whereas Germany has a trade surplus, making it a net lender. These positions are determined by comparing exports and imports, where a surplus indicates more exports than imports and vice versa.
Step-by-step explanation:
Understanding Trade Surpluses and Deficits
Calculating the trade balance involves subtracting the value of a country's imports from its exports. A trade surplus occurs when the value of exports exceeds the value of imports, while a trade deficit is present when imports surpass exports. To determine whether a country is a net lender or borrower, one must look at the net inflow of foreign saving; a surplus indicates net lending (providing more resources to other countries than it receives), and a deficit indicates net borrowing (receiving more resources from abroad than it provides).
Case Studies from Table Data
- The United States has a trade deficit of 3.7% of its GDP.
- Germany has a significant trade surplus amounting to 5.7% of its GDP.
From the provided data, the United States would be a net borrower internationally, while Germany would be a net lender. The trade balances can vary considerably in relation to a country's GDP, which affects their position as either a net lender or borrower.