"It is best for a country never to borrow from foreign lenders." Do you agree or disagree? Why?...

Question:

"It is best for a country never to borrow from foreign lenders." Do you agree or disagree? Why? What triggered the debt crisis of 1982?

Financing Activities

In business, sometimes they need a loan to pay bills or expand. When a business does not have this funding available, they can go to a bank and borrow it. This is considered a financing activity because the bank is lending the company the money in exchange for interest on the lent money.

Answer and Explanation:

"It is best for a country never to borrow from foreign lenders." Do you agree or disagree? Why?

Yes, it is best for a country to never borrow from foreign lenders. The foreign lenders may believe that they should have influence over how the funds are used and thus have a say in the government's activities.

What triggered the debt crisis of 1982?

Mexico defaulted on its sovereign debt in August 1982. That caused the debt crisis of 1982.


Learn more about this topic:

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What Is Financing? - Definition & Types

from Corporate Finance: Help & Review

Chapter 8 / Lesson 7
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