What Are the Five Major Channels, Which Developing Countries Use

question 62

Essay

What are the five major channels, which developing countries use to finance their external deficit?

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Definitions:

Glue Factory

A glue factory is an establishment where animal glue is produced, typically by boiling animal hides, bones, or connective tissues.

Corrective Taxes

Taxes designed to correct the effects of negative externalities, often imposed to encourage or discourage certain behaviors.

Social Optimum

A state in which resources are allocated in the most efficient way from the perspective of society as a whole.

Economic Efficiency

A state where all resources in an economy are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.