what two methods can a less developed country use to finance its economic development?
A.internal financing & debt rescheduling
B.Interal financing & foreign investment
C.Foreign investment & debt rescheduling
D.Infrastructure & foreign banks
B.Interal financing & foreign investment
And your answer is?
your ma
trheh
To determine the two methods that a less developed country can use to finance its economic development, we can examine the options provided:
A. Internal financing & debt rescheduling: This option refers to the country using its own resources and funds to finance its economic development. This can include utilizing tax revenues, savings, and domestic investments. Debt rescheduling, on the other hand, involves negotiating with creditors to extend the repayment period, reduce interest rates, or forgive a portion of the debt.
B. Internal financing & foreign investment: This option involves the country using its own resources while also attracting foreign investment to finance its economic development. Internal financing, as mentioned earlier, refers to the country utilizing its own funds. Foreign investment refers to the inflow of capital from other countries through investments in industries, infrastructure, or other economic sectors.
C. Foreign investment & debt rescheduling: In this option, the country relies on foreign investment as a source of financing for its economic development. This can include attracting foreign direct investment (FDI) or receiving loans from foreign entities. Debt rescheduling is also included, as explained earlier.
D. Infrastructure & foreign banks: This option suggests that the country can finance its economic development through infrastructure projects and the involvement of foreign banks. Infrastructure projects refer to investments in building or improving transportation systems, energy networks, communication systems, and other essential facilities. Foreign banks can provide loans or financial services to fund these infrastructure projects.
Based on the given options, the two methods that a less developed country can use to finance its economic development are:
B. Internal financing & foreign investment
This option allows the country to utilize its own resources while also attracting foreign investment to supplement the funds needed for development.
C. Foreign investment & debt rescheduling
This option involves relying on foreign investments as a source of financing, while also negotiating with creditors to reschedule debt payments, making repayment more manageable and freeing up funds for development.