Why Is There Concessional Finance

question 19

Multiple Choice

Why is there concessional finance?

• A)Poor countries do not have the technology necessary to exploit their own natural resources and require help from multinational corporations.
• B)If poor countries do not offer tax breaks,multinational corporations will build their factories in other countries.
• C)If developing countries strictly enforce labor and environmental laws,multinational corporations will move their factories to other countries.
• D)The International Monetary Fund has a special relationship with international investors.
• E)Poor countries cannot afford regular loans at the market rate and so below-market loans are offered as a form of aid.

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