Reference no: EM133197609 , Length: 1 Pages

Assignment:

1. Explain what is meant by capital flight. How would you distinguish capital flight from the normal desire of investors to diversify their portfolios by investing abroad?

2. Why may the debt crisis be only "sleeping" rather than "dead?"

3. It has been argued that tied aid leads to inefficiencies in the recipient country's economy. Explain how this could occur.

4. State three major potential advantages of foreign direct investment for a developing country. State three major potential disadvantages.

5. Explain the motives of developed countries in providing foreign aid.

6. Why does multinational corporation investment not necessarily offer the advantage of domestic employment expansion?

7. What are the main forms through which foreign capital flows into LDCs? Discuss the evolution of the various forms across the last decade.

8. Compare and contrast the workings of the organized and unorganized money markets in developing countries.

9. What are some of the major characteristics of financial repression? To what degree may financial liberalization be expected to address the issue of inadequate saving?

10. In what ways do the actual and potential roles of central banks differ between developed and developing countries?

11. What is a development bank? What are some of the reasons they have not had greater success?

12. Describe the costs and benefits of privatization of state-owned enterprises. In which cases would privatization seem most advisable?\

Readings:

Economics Development

By Michael P. Todaro and Stephen C. smith