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Why is international finance necessary?

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2005-10-28 13:10:24
2005-10-28 13:10:24

Capital investment is the single most critical factor in growing an economy. Without investment, there is no growth, only subsistence. For example, a farmer can barely feed himself if he has no tools. If he has the capital to invest in a horse and plow he can feed many people. If he has the capital to invest in a tractor he can feed many more. Developing countries have a hard time getting their economies to grow because they have no capital. This is why international finance is necessary.

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