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Mexico had a foreign debt much larger than the country could afford to pay. This resulted in successive devaluations, economic depression and inflation.

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What is domestic borrowing?

Domestic borrowing refers to the process by which a government or entity raises funds from within its own country, typically through the issuance of bonds, loans, or other financial instruments. This type of borrowing is often used to finance public projects, manage budget deficits, or stimulate economic growth. It can involve borrowing from local banks, financial institutions, or individual investors. Domestic borrowing is generally considered less risky than foreign borrowing, as it is denominated in the country's own currency.


Discuss some possible conflicts between host governments and foreign-owned companies?

mnc-host govt relationship is often complicated by the difference in PEST factors, and the Political/Legal environment is the most complicated factor. Labour/HR laws, Marketing/Promotion standards, Financial/Borrowing procedures and Ethics/Morals.


What are the two key methods the governments use to intervene in foreign trade?

war and sanctions.


What are two reasons governments protect the interest of the distribution channels in their economies against foreign threats?

I feel that, governments protects the distribution channels against foreign threats to prevent local industries being outwitted by multinationals and also in protecting their culture.


What is the relationship between a budget deficit and foreign debt?

A budget deficit occurs when a government's expenditures exceed its revenues, often leading it to borrow money to cover the shortfall. This borrowing can contribute to foreign debt if the government takes loans from foreign lenders or issues bonds purchased by international investors. As the deficit grows, the reliance on foreign borrowing may increase, potentially leading to higher foreign debt levels. Ultimately, a sustained budget deficit can make a country more vulnerable to external economic pressures and exchange rate fluctuations.

Related Questions

Are Mexicans foreign people?

To anybody that is not Mexican, the Mexicans are foreign people.


What best describes an activity of Dollar Diplomacy?

loaning money from foreign governments.


In seeking diplomatic recognition from foreign powers during the war of independence the American government found it necessary to?

facilitate the purchase of arms and borrowing of money from other nations


Which action is a part of an ambassadors job?

C. Maintaining relationships with foreign governments apex


What branch decides to recognize foreign governments?

Recognition of foreign governments is normally shown by the establishment of a consulate, embassy, or special mission to the foreign government in question. These embassies (etc) are established and run by the US Department of State, headed by the Secretary of State (currently Hillary Clinton) and overseen by the President. Therefore, recognition of foreign governments is typically done by the executive branch. Congress has the power to ratify treaties with foreign governments and can pass legislation involving the recognition of or relationships with foreign governments. So sometimes, recognition of foreign governments can be done by the legislative branch. But generally speaking, recognizing foreign governments is a power of the Head of State of a nation, and the Head of State of the United States is the President, so it's an executive branch power.


Why do governments borrow money from world bank?

When the Government could not meet the cost of infrastructure projects and also when there is a huge deficit budget borrowing could not be avoided. But the Government has to calculate the foreign exchange reserves it has and the GDP vs External Debts ratio.


What is interacting with foreign governments called?

Diplomacy


Do Mexicans need a passport to visit the US?

Yes, Mexico is a foreign country.


Does Sarah Palin have experience with foreign governments?

Sarah Palin has minimal experience with foreign governments. She was the governor of Alaska and had little interaction with the leaders of other nations.


WHAT is the representation of a government to other foreign governments?

Diplomacy


Who was the Foreign Minister in the Hawke and Keating Governments?

Evans


What branch makes treaties with foreign governments?

legislative