"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?
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.
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from Corporate Finance: Help & ReviewChapter 8 / Lesson 7