Borrowing facilities internationally, Managerial Economics

Borrowing Facilities

If a country's currency is not convertible, it can borrow from countries whose currencies are convertible and use the convertible currencies to make its international payments.  The difference from gold and national convertible currencies is that they are conditional - they have to be repaid.  Borrowing facilities as a source of liquidity have the advantage that they can be expanded to meet the growing demands.  However, the draw-back is that it makes the borrowing country indebted to the lending country, which is sometimes politically undesirable because of the "strings" which may be attached to the loans.

Posted Date: 11/30/2012 5:26:58 AM | Location : United States







Related Discussions:- Borrowing facilities internationally, Assignment Help, Ask Question on Borrowing facilities internationally, Get Answer, Expert's Help, Borrowing facilities internationally Discussions

Write discussion on Borrowing facilities internationally
Your posts are moderated
Related Questions
Q. Explain about Isoquant Map? We can label isoquants in physical units of output without any difficulty. Because every isoquant signifies a specified level of output it's poss

Nature and Functions of Money The concept of money is very difficult to define . it is belongs to the category of things which are not amenable to any single definition. It is p

explain critically growth maximisation model of morris ?

When is production profitable according to price-taking firm at profit, break-even or loss? Production profitable at profit, break-even or loss: a. When TR > TC, in that cas

The concept of point elasticity is applicable where change in price and the resulting change in quantity are infinite or small. Though, where change in price and consequent hunger

Suppose a firm's budget were large enough to employ 100 units of either labor or capital, the cost of a unit of labor being the same as a unit of capital. The production function i

State the Demand analysis Analysis of demand is assumed to forecast demand that is a basic component in managerial decision-making. Demand forecasting is of importance since

Direct intervention   The government can also intervene directly in the economy to see that its wishes are carried out.  This can be achieved thorough: a.     Price and i

Types of isoquant

Suppose that the price elasticity of demand for cereal is -0.75 and the cross-price elasticity of demand between cereal and the price of milk is -0.9. If the price of milk rises by