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

Problems of lower income countries, PROBLEMS OF LOWER INCOME COUNTRIES ...

PROBLEMS OF LOWER INCOME COUNTRIES There are vast income and wealth disparities in world we live in. Approximately one-fourth of the world’s population accounts for the three-f

Do you agree with what dick brandon said regarding sex, Do you agree with w...

Do you agree with what Dick Brandon said regarding sex? Do not take this question too seriously! Even though the quotation had a humorous intention, this does highlight a serio

Forecasting evolution techniques, Following are the number of victories for...

Following are the number of victories for the Blue Sox and the hotel occupancy rate for the past eight years.  You have been asked to test three forecasting methods to see which me

What is social cohesion, What is social cohesion? Social cohesion: ...

What is social cohesion? Social cohesion: Social cohesion is regarding how united, cooperative, connected and trustful a society is. This cohesion desires tolerance for c

Elasticity of Demand, Question #1 A baseball team is trying to predict tick...

Question #1 A baseball team is trying to predict ticket sales for the upcoming season. They are also considering increasing prices. The market has a population of 2 million perso

Business Math, Scenario: A client comes to you for investment advice on his...

Scenario: A client comes to you for investment advice on his $500,000 winnings from the lottery. He has been offered the following options by three different financial institutions

Describe situations wherein an is project use subcontractors, Describe situ...

Describe situations wherein an IS project may need or wish to use subcontractors. Purposes for using subcontractors include: a. Lack of resources or skills: The organisation

What is function of world trade organisation, What is the function of World...

What is the function of World Trade Organisation in the promotion of development? The World Trade Organization (WTO) is international association dealing along with the global

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

Jobs, How much power or influence does a U.S. President versus a company CE...

How much power or influence does a U.S. President versus a company CEO actually have in a free enterprise system, when it comes to producing jobs or the decision to manufacture co

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