Question about economics?
Should the wealthy nations of the world make grants to the poorer nations, as many now argue?
(a)What argument can you present in favor of such grants?
(b)What arguments can you present against such grants?
Answer:
There is no "correct" answer.
"A" argument
Arguments for such grants are made by saying that such grants may stimulate their economies. This would allow them to produce more goods and generate more value to the world and become less reliant. If they use the funds wisely they would be able to spend money on developing vocational education as well as production abilities within their own market.
An example of this was a recent loan given to Mexico. I think it was 10 billion dollars. They paid it back on time plus interest. A lot of economic reform is occurring in that country. This money greatly helped them get some balls rolling they otherwise may not have been able to do.
B "argument"
Arguments against such grants would be that the money would be wasted frivolously or corruptly distributed, thus having no effect on the economy.
Another argument against could be that this could disrupt trade practices they already employ and weaken trade that they are already doing. An increase in supply created by that country could lead to lower prices and overall may lead to lower profits. This however would depend on their current trade situation.
Those are a couple of quick answers for ya.
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Government essay?
(a)What argument can you present in favor of such grants?
(b)What arguments can you present against such grants?
Answer:
There is no "correct" answer.
"A" argument
Arguments for such grants are made by saying that such grants may stimulate their economies. This would allow them to produce more goods and generate more value to the world and become less reliant. If they use the funds wisely they would be able to spend money on developing vocational education as well as production abilities within their own market.
An example of this was a recent loan given to Mexico. I think it was 10 billion dollars. They paid it back on time plus interest. A lot of economic reform is occurring in that country. This money greatly helped them get some balls rolling they otherwise may not have been able to do.
B "argument"
Arguments against such grants would be that the money would be wasted frivolously or corruptly distributed, thus having no effect on the economy.
Another argument against could be that this could disrupt trade practices they already employ and weaken trade that they are already doing. An increase in supply created by that country could lead to lower prices and overall may lead to lower profits. This however would depend on their current trade situation.
Those are a couple of quick answers for ya.
More Questions and Answers: