Question

how does financial resources affect the development of a country

Answer 1

The accumulation of international reserves and lower levels of external debt allow some developing countries to protect themselves from the rapid deterioration of capital flows. But the contraction of credit, its high cost and the volatility of portfolio investments have already led to a contraction of financial flows.

Answer 2

Answer:

Financial resources affect India's economy, infrastructure and its trade in many ways.

Explanation:

Financial resources affect the development of a country in the following way:

a) Development of economy - Financial resources lead to development of economy of the country, leading to generation of employment opportunities, reduction in poverty  and overall nation's development.

b) Development of Infrastructure - Financial resources generate surplus money for development of country's infrastructure, amenities and facilities. They also lead to development of education, medical and employment infrastructure of the country.

c) Trade with other countries - If the company has low financial resources it will lead to weakening of the country's currency and thus affecting its trade relations with other countries.