Final answer:
A country that purchases more foreign assets than it sells domestically is a net borrower, indicating past debts and a trade deficit.
Explanation:
When a country's purchases of foreign assets are greater than foreign purchases of domestic assets, the country is a net borrower from the rest of the world.
This indicates that the country is repaying past debts and importing more goods and services than it exports, leading to a trade deficit.
Learn more about international investment balance here:
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