The impact of rising interest rates on other countries
- most people will borrow most affected. Companies and governments borrowed heavily in dollars and now have difficulty in paying the existing debt and to attract and retain foreign investment.
- For companies and the emerging market countries have increased borrowing in dollars, but earnings are mainly the native copper, therefore the payment of their debts will become more expensive as the dollar rose.
- effect on the Investors. They can earn attractive returns by investing in America and away from investments in risky countries.
- The impact on countries rely on exports of basic commodities. The price of oil, metals and agricultural commodities have fallen sharply, so companies and governments may face higher borrowing costs socks at a time when revenues from mining and agricultural products is also significantly reduced.
- Besides the pressure, then the dollar could rise back is good for the European economy and Asia as it meant that the price of commodities exported to cosmetics will become cheaper
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