Why Is Borrowing Foreign Capital Controversial in the Borrowing Countries

question 11

Multiple Choice

Why is borrowing foreign capital controversial in the borrowing countries?

• A)When investment levels are high,interest groups fight over how the money should be divided and spent.
• B)The repayment of loans requires policies that reduce the incomes of those who did not directly benefit from the loans.
• C)Taxpayers in borrowing countries have to bail out their own banks.
• D)The people who bear the burden of repayment are the wealthy industrialists who borrowed the money.
• E)International investment inhibits growth in developing countries.

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Definitions:

Phagocytosis

A cellular process where a cell engulfs particles, bacteria, or other foreign bodies, enveloping them in a vesicle to be digested.

Lymphocyte Activity

The roles and behaviors of lymphocytes, a type of white blood cell, in the immune system, including recognizing and combating pathogens.

Microorganisms

Tiny living organisms that can only be seen with a microscope, including bacteria, viruses, and fungi, among others.

Memory Cells

A type of immune cell that remains in the body for long periods, ready to quickly respond to previously encountered antigens.