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

Demand & probality, Demand uncertainty, particularly in the fast fashion in...

Demand uncertainty, particularly in the fast fashion industry, is a significant factor. For this reason, María, the Supply Chain Manager of The Fast Fashion Group (FFG) has decided

Monopoly pricing, 1. (classical monopoly pricing) A monopolist faces a dema...

1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100   p: (a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity? (b

What are the economic reasons for protectionism, QUESTION (a) Discuss w...

QUESTION (a) Discuss whether international trade between countries is always beneficial. (b) What are the economic reasons for protectionism? (c) Does the National Income

Informal sector, Identify the features of informal sector in African countr...

Identify the features of informal sector in African countries

Privatisation, definition, advantages and disadvantages of privatisation?

definition, advantages and disadvantages of privatisation?

Labour markets in perfect competion, #question.discuss the contention that ...

#question.discuss the contention that the existance of a labour market is characterised by perfect competition is a fallacy.

Elasticity, why does the quantity of salt demanded tend to be unresponsive ...

why does the quantity of salt demanded tend to be unresponsive to change in its price?

Is migration a problem, Is migration a problem? Huge scale rural-to-ur...

Is migration a problem? Huge scale rural-to-urban migration places a strain onto city economic systems. As like some examples of: • There is inadequate demand for labour to

What is absolute poverty and relative poverty, What is absolute poverty and...

What is absolute poverty and relative poverty? Absolute poverty: It is an income level below that essential to meet fundamental requirements. The UN measure of absolute

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