Is foreign debt a problem, Business Economics

Assignment Help:

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 interest payments

• The opportunity cost of interest payments is public services forgone.

• Loans are repaid within foreign currency which has to be earned during a surplus onto the current account balance.

Implications: Foreign debt good only when this is the result of financing investment in suitable productive capacity. Increasing output permits debt and interest to be repaid.


Related Discussions:- Is foreign debt a problem

What is employment and unemployment, What is Employment and Unemployment? ...

What is Employment and Unemployment? Employment and Unemployment: Employment: It is the number of people working within the economy. Unemployment: It is the nu

Firm, how managerial economics is applied in a firm?

how managerial economics is applied in a firm?

Why are state approaches considered as unsuitable, Why are state approaches...

Why are state approaches occasionally considered as unsuitable for promoting development? Liberal economists’ argument government intervention really thwarts development. G

Online stock trading company, An online stock trading company makes part of...

An online stock trading company makes part of their revenue from clients when the clients trade stocks therefore, it is important to the company to have a good idea of how many tra

Research analysis, what are the abstracting and indexing services in social...

what are the abstracting and indexing services in social science?

Incremental profit, Calculate the incremental profit Electron Control would...

Calculate the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.

Actual and theoretical price adjustment, For any stock splits (if there wer...

For any stock splits (if there were any it will look like the screen below) compare the actual and theoretical price adjustment.  For example, on the day that a 2-for-1 split is ef

Household sector, The prevention of main swings in economic activity can be...

The prevention of main swings in economic activity can be handled most simply by the household sector. Explain why?

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