It is true because a country that imports a tariff on shoes buyers of shoes in that country don’t do well so the answer would be True
Brazil is an example of a closed economy as it has the least amount of imports in the world
Answer:
Higher levels of external debt create a greater threat of global instability.
Explanation:
External debt is the sum of one country's obligations to another, which is composed of public debt (contracted by the state of the country) and private or private sector debt (contracted by individuals abroad).
Foreign debt to other countries is often given through agencies such as the International Monetary Fund or the World Bank. If the debtor has trouble paying it off, it can be a serious problem for the economic development of a country, and even for its autonomy.
In principle, debt is not bad, because it allows nations to conserve their own resources and receive external resources to exploit, process or produce new goods and services. However, it becomes a problem when the debt is not actually used for the requested purpose or the repayment conditions harden. Then it can become one of the causes of underdevelopment rather than a way to solve it.
