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
Managerial economics according to Mote and Paul "Managerial economics refers to those aspects of economics and its tools of analysis most relevant to the firm's decision-making

I. A farmer – businessman is in a quandary as to what crop to plant in his land. He has the option to plant Crop A, Crop B, or Crop C. f the weather turns out to be good and the

in the context of oligopoly theory explain the channels via which either a cost reduction or a quantity increase influence a supplier''s profitability


Time domain: Time domain is a term which is used to define the analysis of mathematical functions or physical signals, with respect to time. In the time domain, signal or function

who are the contributors in economics and what they contribute in economics

Explain the short-run production function with one variable input with the help of assumed figures. Clearly indicate the three stages of physical product, using table and graphs.

What market type does the company you work for operate under? What makes you think this? Do you think that this is the right market type for your company to operate in? Explain you

The Budget line and its economic interpretation The indifference curve shows us consumer preferences but it does not show us the situation in the market place.  Here the consu

Direct control and Moral Suasion Without actually using the above weapons, the central bank can attempt simply to use "moral suasion" to persuade the commercial banks to restr