ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 21, Problem 4.6P
To determine
To discuss:
The consequence of foreign aid by rich countries to the poorer countries.
Concept Introduction:
The assistance or aid provided by a country to another is generally known as foreign aid. The assistance might be financial, military or labor-oriented with little or no benefit expected.
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- what is the effectiveness of foreign aidarrow_forwardTrade Pattern Of USA and Chinaarrow_forwardON CULTURE: Not all people in your country support globalization, and some feel that globalization is an economic threat. However, to what extent could it be they may also feel that it is a threat to their culture?arrow_forward
- Question 25 (1 paint) If the catch-up effect is universal, i.e. the poorer countries grow faster. Given enough time, what would happen to the international income differences? The catch-up effect does not do anything to the international income differences. They would remain the same because income in both the rich and poor countries would grow over time. They would increase because the rich countries would continue to get richer. They would disappear.arrow_forwardFour things that can indicate improvement in the standard of living in a countryarrow_forwardCreate a table that identifies the macroeconomic policies for a high-income country, a middle-income country, and a low-income countryarrow_forward
- Why are business investments and consumption important to evaluate the economic situation of a country?arrow_forwardHow does the production of cash crops affect the people of the exporting country and the importing country?arrow_forwardAccording to the 2018 Foreign Aid table below: Percentage of Donor Total Income Country Total Aid ($ billions) Ints United States $34 0.17% United Kingdom 19 0.70 Germany 25 0.61 France 12 0.43 Japan 14 0.28 Sweden 6 1.04 Canada 0.28 Italy 5 0.19 Australia 3 0.23 24-Nation Total $153 0.31% Source: OECD (2018 data). Instructions: Enter your responses as a whole number. a. How much foreign aid did the United States provide in 2018? 24 34 billion b. How much more aid is required to satisfy the UN's Millennium Aid Goal if U.S. GDP was $20 trillion? (Hint The UN's Millennium Aid Goal is to raise foreign aid levels to 0.7 percent of donor-country GDP.) 24 20 billionarrow_forward
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