Why Is There Concessional Finance

question 14

Multiple Choice

Why is there concessional finance?

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

---

Definitions:

Debt Financing

A method of raising capital through the borrowing of money, which needs to be repaid at a later date, often with interest.

Lessee

An individual or entity that leases or rents property from a lessor.

Leasing Cash Flows

The cash inflows and outflows associated with leasing operations, including initial receipts, ongoing lease payments, and final residuals.