International Borrowing and Lending International movements of capital Refer to borrowing and lending between countries -Example: AU.S. bank lends to a mexican firm Can be interpreted as intertemporal trade Refers to trade of goods today for goods in the future Copyright C 2003 Pearson Education, Inc Slide 7-10Copyright © 2003 Pearson Education, Inc. Slide 7-10 ▪ International movements of capital • Refer to borrowing and lending between countries –Example: A U.S. bank lends to a Mexican firm. • Can be interpreted as intertemporal trade –Refers to trade of goods today for goods in the future International Borrowing and Lending