A U.S.firm is deciding on whether or not to build a production facility in Montenegro.All else equal, if Montenegro has a very low foreign debt as a percentage of GDP, it therefore has relatively low

Question

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A low foreign debt as a percentage of GDP indicates that Montenegro has a relatively low financial risk, as it suggests the country is less burdened by debt obligations and has a more stable financial position.

A USfirm Is Deciding on Whether or Not to Build a a Production