What is TRUE about debt-for-nature swaps?Question 50 options:The wealthy nation's debt is forgiven when it donates money to conservation efforts. In exchange for land rights in protected areas, wealthy nations forgive part of a developing nation's debt. Wealthy nations forgive a part of a developing nation's debt if that nation promises to pay a percentage of any ecotourism profit to the wealthy nations. Part of a developing nation's debt is forgiven by wealthy nations if they promise to protect natural areas in their country. Part of a developing nation's debt is forgiven by wealthy nations if they promise to give the wealthy nations exclusive rights to vacation in protected areas.

Part of a developing nation's debt is forgiven by wealthy nations if they promise to protect natural areas in their country.

Explanation:

Biodiversity

This is simply defined as arrays or wide ranges of plant and animal life in a particular habitat/world. It is also known as the types of organisms in a given area, the genetic differences within a population, the types of species in a community, or the different types of communities in an ecosystem.

Endangered Species

This is simply known as species whose are limited in numbers. That is the species is at risk of extinction.

Debt for nature swap

This was a form of deal made by agencies such as the World Bank with third world countries. The deals focus was that they will cancel their debt if the country will set aside a certain amount of their natural resources.

It is also known as the forgiveness or clearing of international debt in exchange for nature protection in developing countries.

Advantage and disadvantage of debt-for-nature swaps

Advantage

(1) There is an expansion of purchasing power cash donations by converting.

(2) It create an avenue for channeling spending toward goals of local environmentalist group.

3. Reduce outstanding debt etc.

Disadvantage

(1) It legitimizes debt, admitting must be repaid or repurchased.

(2) The Willingness of the debtor government to undergo the swap is small to its interest in spending local currency generated on specific environmental projects, less accuracy that funding will forthcoming than debt-for-equity swaps.