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.

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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

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Economics

Why is international finance desirable to borrowing countries?

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

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

International finance can force borrowing countries to privatize their industries.

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

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

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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