How did foreign debt arise, Business Economics

Assignment Help:

How did foreign debt arise?

Evaluation: Borrowing shows an injection of new resources in the domestic economy and also an opportunity for development.

• When borrowed resources are used to raise productive capacity, in that case the loan and interest repayments can be met through economic growth.

• When the loan is used to finance current account deficits in that case there is no net investment as well as future economic growth. Debt is a burden.


Related Discussions:- How did foreign debt arise

Return on a particular index of stocks, A sample of 60 mutual funds was tak...

A sample of 60 mutual funds was taken and the mean return in the sample was 13% with a standard deviation of 6.9%. The return on a particular index of stocks (against which the mut

Price elasticity of demand, explain why each of the following factors influ...

explain why each of the following factors influence the own price elasticity of demand for a comodity 1. Consumer preferences 2. the narrowness of definiton of the commodity

Analyse the monetary policy called inflation targeting, Question 1: (a)...

Question 1: (a) "Money demand is inversely related to interest rates and is stable over time." Discuss the theoretical and empirical validity of this statement. (i) Analyse

Limitations of pareto-optimal conditions as a measurement of, limitations o...

limitations of pareto-optimal conditions as a measurement of welfare

Low per capita income, Assume that the per capita income in Alfaland (with ...

Assume that the per capita income in Alfaland (with initial high per capita income) is growing quicker than it is in Betaland (with initial low per capita income). Then: the gap in

Own price elasticity of demand for a commodity, a) Explain why each of the ...

a) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the comm

Briefly describe the axioms of hannah and kay (1977), QUESTION 1 i) Dis...

QUESTION 1 i) Distinguish between the different kinds of concentration measures ii) Briefly describe the axioms of Hannah and Kay (1977) iii) Derive and explain the Dorfm

How does foreign debt management improve development, How does foreign debt...

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

Differentiate between returns to factor and returns to scale, QUESTION ...

QUESTION a) Differentiate between returns to factor and returns to scale. b) In the long-run the Average Cost Curve is u-shaped. Discuss c) Whenever a firm is making loss

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