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Unformatted text preview: ii. If Stiglitz (2000) were to advise the Irish on the best way to use foreign investment for economic growth, what would he say? Do not accept short term financing from abroad, there are no advantages for the developing country. 2. The country of Sudan located in Northeastern Africa received $514 million in aid from the United States in 2009. a. Explain three reasons why a country would want aid money from the United States? (9 points) i. To make up for a foreign exchange gap. ii. To make up for a savings/investment gap. iii. Because they were told by the developed countries that this was necessary for growth. iv. The govemment wants to use the money to increase its power and status in the eyes of the people. v. The government wants some spending money that it feels the rich countries owe it. 4...
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This document was uploaded on 10/10/2011.
- Winter '09