The Lost Decade began in 1990 when Colombia announced that it lacked the international reserves it needed to pay the interest and principle due on its foreign debt.
Indicate whether the statement is true or false
Question 2 - The international investment position is defined as
A) the total of all domestic assets owned by foreigners minus the total of all foreign assets owned by residents of the home country.
B) the total of all domestic assets owned by foreigners plus the total of all foreign assets owned by residents of the home country.
C) the total of all foreign assets owned by residents of the home country minus the total of all domestic assets owned by foreigners.
D) the total of all foreign assets owned by residents of the home country times the total of all domestic assets owned by foreigners.
Question 3 - Economists agree that the free movement of capital is desirable.
Indicate whether the statement is true or false
Question 4 - If the United States and Mexico trade Budweiser for Modelo beer, what type of trade does this represent?
What will be an ideal response?
Question 5 - Private capital flows in the form of both direct and portfolio investment began to return to Latin America after 1989, effectively marking the end of the Lost Decade.
Indicate whether the statement is true or false
Question 6 - What is odious debt, and how is the Democratic Republic of the Congo (DRC) an example of this?
What will be an ideal response?
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