World bank an important international institution

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-World Bank an important international institution that provides loans at below-market interest rates to developing countries, typically to enable them to carry out developmental projects. *Controversy - would these be controversies surrounding the WTO, IMF, UN ect? -Recession a sharp slowdown in the rate of economic growth and economic activity. -Depression a severe downturn in the business cycle, typically associated with a major decline in economic activity, production, and investment; a severe contraction of credit; and a sustained high unemployment. -Default to fail to make payments on a debt. -Austerity-- this is controversy having to do with receiving foreign money-- when countries can’t service their debts they impose austerity measures the application of policies to reduce consumption, typically by cutting government spending, raising taxes, and restricting wages.
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if borrowed money is not used productively then it can become difficult for the borrowing nation to pay back its debt (lecture example: paying for school vs paying for parties) austerity measures can lead to weakened economic conditions which can lead to recession and depression economic trouble in one country can quickly spread to the entire region to the entire world Why do we see most foreign investments go from developed countries to other developed countries? Anyone know the answer to this?
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