Economics Why is international finance desirable to borrowing countries?   a.  International finance allows capital-abundant societies to fetch higher rates of return on the provision of capital.   b.  International finance allows capital-starved societies to achieve better bargains than what is available domestically.   c.  International finance can force borrowing countries to privatize their industries.   d.  International finance can encourage borrowing countries to liberalize trade, despite domestic pressure.   e.  International finance is subject to market trends and ebbs and flows with market cycles.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 45P: Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented...
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Economics

Why is international finance desirable to borrowing countries?

 

a. 

International finance allows capital-abundant societies to fetch higher rates of return on the provision of capital.

 

b. 

International finance allows capital-starved societies to achieve better bargains than what is available domestically.

 

c. 

International finance can force borrowing countries to privatize their industries.

 

d. 

International finance can encourage borrowing countries to liberalize trade, despite domestic pressure.

 

e. 

International finance is subject to market trends and ebbs and flows with market cycles.

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