World Debt
- Created by: Annie
- Created on: 01-05-13 17:59
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- World Debt
- World Bank
- A joint bank owned by governments of over 180 countries set up to provide loans for development.
- Debt
- A borrowed sum of money which you need to pay back.
- Interest Bank
- The charge for taking a loan, given as % of the loan.
- Tariff
- A tax which governments puts on imports and sometimes on exports.
- Subsidy
- Grant (e.g - growing a crop)
- How does a country go into heavy debt?
- The next year the country sells crops and minerals to others as usual...
- But these prices have dropped again
- So it does not earn as much as hoped
- But it still has to pay interest on loans...
- Which then leaves it short of money to pay for imports and development projects....
- But it still has to pay interest on loans...
- So it does not earn as much as hoped
- But these prices have dropped again
- The next year the country sells crops and minerals to others as usual...
- World Bank
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