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ID number:861505
Evaluation:
Published: 25.09.2004.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Australian external debt
Introduction
Foreign debt is referred to also as external debt. Foreign debt is distinguished from other kinds of foreign investment capital inflow such as foreign ownership, because it carries with it the obligation to pay interest or to repay principal.
There is no single factor that caused the dramatic deterioration in Australia's external position (McGillivray&Papadopoulos, 1995). The contributing factors
are both internal and external.
When domestic interest rates are high relative to overseas interest rates,borrowing in overseas financial markets is…

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