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

What is the theory of mercantilism, Mercantilism was the economic philosoph...

Mercantilism was the economic philosophy underlying English colonial policy. The object of mercantilism was to enhance the wealth of the Mother County (Great Britain) in gold & sil

How less developed countries cannot economies grow, How less developed coun...

How less developed countries cannot economies grow by developing services as tourism? Less developed countries cannot economies grow by developing services as tourism if: Ga

Determine the critical path, S M Construction has been awarded a contract t...

S M Construction has been awarded a contract to build a new manufacturing plant just outside Cardiff. The activity on arrow table below gives data on the activities involved in the

Define the implications of dependency problem, Define the implications of d...

Define the implications of dependency problem. Implications of dependency problem: To escape exploitation, underdeveloped countries should gain political, economic and so

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

Explain the mixed economy system, Explain the mixed economy system. Mix...

Explain the mixed economy system. Mixed economy: Several resources are owned through the public sector (government) and several resources are owned through the private sector o

Ppc, rice donation

rice donation

Advantages and disadvantages of Pure Monopoly, What is Monopoly and how doe...

What is Monopoly and how does it affect the economic postively and negatively?

Explain the law of demand and the factors affecting demand, QUESTION (a...

QUESTION (a) Explain the law of demand and the factors affecting demand. (b) Explain and illustrate how demand of a commodity will change if there is a tax on that product.

Franchise, How can franchises ensure their products are appropriate for int...

How can franchises ensure their products are appropriate for international markets?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages