Smoothing the bumps in the flow of foreign exchange |
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Buy Fighter Planes to Protect Your Border with Sans Fil |
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Yak's economy worsens. You and the President are thrown out of power. The new government has nowhere to turn and has no experience in reforming their new economy. Would you like another chance? If you could do it over again, would you use your loan: |
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To buy agricultural supplies to grow decaf mocha beans? | In a factory to manufacture hydrogen-powered cell phones? |  |
You may
feel that a powerful military will earn you international respect
and make Yak a strong country. But this was a poor decision.
Sans Fil is one of your potential trading partners. Military tensions
will cut your exports to that country in half. The purchase of
military equipment does not increase overall exports. It doesn't bring
in hard currency from other countries, either. Now you have no way to
pay back your loan.