Redistribution of capital between states. There is an averaging of the rate of return: in one state, capital with a low profit parameter is sent to another country, where it will be spent. Thus, the norm is averaged.
Cost minimization. Gold is exchangeable for other means of circulation (therefore, investments in gold are the most stable). International loans are less expensive, such as securities such as checks or promissory notes.
Time-efficient concentration of funds. Thanks to the existing mobile number list have development of elements and forms of international lending, TNCs (transnational corporations) and lending institutions are able to collect a large amount of money in a short time.
Impact on the economic life of the country. The use of borrowed capital makes it possible to stimulate an increase in GNP, as well as to distribute it.
The subjects of international credit are the lender and the borrower. They are non-residents and conduct operations in the capital markets of the international level. Each of the parties involved in the loan negotiation process does not have a clearly defined national interest. The main motive is to earn income.
International loans are provided to the state based on the functioning of national finances. If the state has a budget deficit, funding is needed, including from external sources. Basically, such a scheme is followed by states whose economy is just developing.