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How Can a Bank Reduce Its Exposure to the Debt

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How can a bank reduce its exposure to the debt of developing nations?


Definitions:

Social Exchange Theory

A psychological theory that explains social behavior in terms of an exchange process, aiming to maximize benefits and minimize costs in relationships.

Altruistic Behavior

Actions intended to benefit others without expecting personal gain.

Costs And Benefits

Costs and benefits refer to the negative and positive outcomes, respectively, that are considered when making decisions or evaluating actions and their impacts.

Social Trap

A situation in which a group of individuals act against their best interests by pursuing short-term gains, leading to a worse situation for all in the long term.

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