It is always advantageous to use foreign debt to finance a foreign project, particularly in developing countries.

Question

Quizplus · Accepted Answer

Using foreign debt to finance a project, especially in developing countries, can expose the project to currency and repayment risks, and it may not always be the most advantageous option due to potential fluctuations in exchange rates and the economic stability of the country.

It Is Always Advantageous to Use Foreign Debt to Finance