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
The war on drugs is an expensive battle, as a great deal of resources go into catching those who buy or sell illegal drugs on the black market, prosecuting them in court, and housi

The production function of the personal computers for DISK Company is given by Q = 10 KL where Q is the number of computers produced per day, K s the hours of machine time,

USES OF NATIONAL INCOME FIGURES We need national income statistics to measure the size of the "National cake' of goods and services available for competing uses o

define scarcity and oppurtunity how these concepts are useful in managerial decision making

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs. 3 to 2

Why Do Monopolies Exist? Monopolists have market power and as a consequence will charges higher prices and generate less output than a competitive industry. It produces profit

Q. What is the Nature of Commodity ? The nature of a commodity as well has an effect on the price elasticity of its demand. Commodities can be characterised ascomforts, luxurie

Currency Swaps If the currency of one country is not convertible, the central banks o f the two countries can exchange their currencies, and the country with the non-convertib

Technically Efficient Method of Production Let's suppose that commodity X is produced by two methods by employing capital and labour: Factor inputs Met