How does foreign debt management improve development, Business Economics

Assignment Help:

How does foreign debt management improve development?


Borrowing is a policy to encourage growth like aid represents an injection of resources within the economy which enable investment thus growth. When borrowed resources are used to raise productive capacity, in that case the loan and interest repayments can be met by part of the raised output, leaving additional output to increase living standards and cet par.

Less developed countries have an incentive to reduce indebtedness as that decrease $ interest payments on debt and discharge of funds for investment quite than debt repayment.

FDI is extremely sensitive to international confidence. When overseas investors are uncertain about the economic stability of a nation or believe debt repayments may be frozen they will not invest. Debt management reassures overseas investors as well as raises FDI.


Related Discussions:- How does foreign debt management improve development

What are the major economic factors, International oil has been described a...

International oil has been described as the lifeblood of industrial society. A National Security Council paper in 1953 noted that American Based multinational oil companies were in

Cournot model, Consider a Cournot duopoly. The market demand is p=190-q1-q2...

Consider a Cournot duopoly. The market demand is p=190-q1-q2. Firm 1's marginal cost is 40, and firm 2's marginal cost is also 40. There are no fixed costs. A.    Derive every fir

How does foreign debt management improve development, How does foreign debt...

How does foreign debt management improve development? Borrowing is a policy to encourage growth like aid represents an injection of resources within the economy which enable

Exception to law of demand, case study on diamond price and petrol price fo...

case study on diamond price and petrol price for exxception to the law of demand

What are rostowís limitations, What are Rostowís limitations? • Presen...

What are Rostowís limitations? • Presently LDCs face much various conditions than DCs into the 19th century the origin of Rostowís studies • LDCs are very same but very dif

Average amount of debt families, The average amount of debt families have i...

The average amount of debt families have is 2.5 times their annual income with a standard deviation 0.75 times their annual income. How much debt does a family have to have (relati

What is the difference between wealth and income, What is the difference be...

What is the difference between wealth and income? Difference between wealth and income: • Wealth , which is a stock value that is the current value of assets for example b

Can comparative benefit change over time, Can comparative benefit change ov...

Can comparative benefit change over time? Comparative benefit is a dynamic concept. A country can obtain or lose comparative advantage overtime when there is a change within r

Explain why all firms aim at growing big in size, QUESTION a) Different...

QUESTION a) Differentiate between price, income and cross elasticity's of demand. b) How can the concept of price elasticity be useful to the owner of a supermarket who want

Mitesh Khadgi, I want to do few projects on this topic.

I want to do few projects on this topic.

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