POL 271 Lecture Notes - Lecture 29: Portfolio Investment, Mutual Fund
18 Dec 2016
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Document Summary
The united states dollar is the hardest currency in the world. A couple of other currencies are pretty hard but not many. Sources of hard currency/the united states dollar: aid, trade, loan, foreign investment. Aid: a lot of people don"t like to give aid because they want domestic problems solved first. A type of aid is a grant which is something a country doesn"t need to repay. +grants are given to countries that are considered strategically important. Concessional loan: a loan with a very low interest rate essentially making it a special deal. +if a country isn"t certified as an ally in the war against drugs then they won"t receive any kind of aid form the united states. The united states also gives military aid as well but this kind of aid doesn"t do anything to promote economic development. Too much aid in the form of products, shoes for example, can destroy domestic industry which defeats the purpose of aid.
