Consider debt-equity swaps as an approach to debt reduction. ...

[naturalchemist]

Consider debt-equity swaps as an approach to debt reduction. Briefly describe how this works. State two arguments in favor of significant reliance on this strategy and two arguments against.
 
  What will be an ideal response?

Question 2

Studies show that improved education of women in developing countries leads to
 
  (a) lower infant mortality.
  (b) better designed, market based development policies.
  (c) lower international dependence.
  (d) all of the above.

[Leostella20]

Answer to Question 1

In favor: may help restore a healthy balance between debt and equity, which in turn provides greater flexibility in repayment of debt, and may help facilitate a privatization program. Against: leads to issue of high-powered currency (so may be inflationary) and in some indebted countries there is limited availability of companies in which foreign investors have an interest in purchasing. If the question is asked after Chapter 15 has been covered, pros and cons of MNCs in development may figure into the answers.

Answer to Question 2

A

[naturalchemist]

Thank you

[Leostella20]

Happy to help you