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Why Is International Finance Desirable to Borrowing Countries

Question 20

Multiple Choice

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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