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6. Chapter 19 describes several government insurance and guarantee programs, including ExportImport Bank of the U.S., the Private Export Funding Corporation (PEFCO), and the Overseas

6. Chapter 19 describes several government insurance and guarantee programs, including ExportImport Bank of the U.S., the Private Export Funding Corporation (PEFCO), and the Overseas Private Investment Corporation (OPIC).

a. (6 points) What motivates a government to establish such programs?

b. (6 points) What is one of the major criticisms of such programs?

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