How does foreign debt management improve development, Business Economics

Assignment Help:

How does foreign debt management improve development?


Borrowing is a policy to encourage growth like aid represents an injection of resources within the economy which enable investment thus growth. When borrowed resources are used to raise productive capacity, in that case the loan and interest repayments can be met by part of the raised output, leaving additional output to increase living standards and cet par.

Less developed countries have an incentive to reduce indebtedness as that decrease $ interest payments on debt and discharge of funds for investment quite than debt repayment.

FDI is extremely sensitive to international confidence. When overseas investors are uncertain about the economic stability of a nation or believe debt repayments may be frozen they will not invest. Debt management reassures overseas investors as well as raises FDI.


Related Discussions:- How does foreign debt management improve development

Less developed countries economies grow by secondary sector, Define economi...

Define economies grow of less developed countries by developing its secondary sector. Less developed countries economies grow by developing its industrialising: Manufacturi

Assess significance of sales skills to project manager, How would you asses...

How would you assess the significance of sales skills to a project manager? Are they, increasing or decreasing in your view, significance? Why do you think there is this change occ

Important to the success, Brand names can be important to the success of a ...

Brand names can be important to the success of a firm in some industries. Consider industries that demonstrate monopoly, monopolistic competition, oligopoly, and perfect competitio

TR AR MR, WHAT are relationship between them showthese relitionship with th...

WHAT are relationship between them showthese relitionship with the help of digram also state relitionship between AR MR & TR.

Is foreign debt a problem, Is foreign debt a problem? Foreign debt is ...

Is foreign debt a problem? Foreign debt is the whole amount owed overseas through a country at an exact moment in time. Debt is a problem since • High debt imply high inter

Scarcity and original cost, define scarcity and opportunity cost? what rol...

define scarcity and opportunity cost? what role these two concepts play in the making of decision making?

What is conditionality, What is Conditionality? Conditionality is the ...

What is Conditionality? Conditionality is the needs imposed onto countries as pre-conditions for loans. Into crisis situations member countries seek assist from the IMF for

What are the difficulties of developing economies, What are the difficultie...

What are the difficulties of Developing Economies? Problems of Developing Economies: • Internal and external difficulties limit LDCs opportunity for development. • Les

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd