Final answer:
The ability to borrow capital is important in developing nations. If the borrowed funds are not invested wisely, repaying the loans can become challenging.
Step-by-step explanation:
The ability to borrow capital has become a crucial factor in developing nations. These countries often rely on borrowing from foreign institutions to fund their development projects. However, there are risks associated with borrowing, and not all countries may be able to get loans. For example, if a borrower nation does not invest the incoming funds from abroad in a way that leads to increased productivity, they may face difficulties in repaying the borrowed money.