Assignment Question

Assignment Questions

Introduction

Foreign aid, also known as International assistance, is the transfer of resources (funds, goods or services) from one country to another. It may be given in the form of transfer of funds, for the purpose of military, for providing technical assistance. There are several objectives lies behind the foreign aids. It can be provide by the develop country to the under develop country for emergency aid, development aid or food aid etc. sophisticated instrument of policy were added into the foreign aid after the World War II (McEachern, 2012, p. 32).

Discussion

Goals of Foreign Aid

Foreign aid has many significant purposes: development, political and humanitarian.

Humanitarian

This kind of assistance is given to the under develop countries for providing support in the man made and natural disasters like tsunami. The primary objective of this assistance is to protect the lives of the suffering people and also to maintain dignity.

Development Aid

Many programs are conducted for reducing poverty and increasing economic growth like agricultural programs, educational program etc. it is mostly given for the purpose of the development in the low income country.

Foreign Aid and Economic Development

Foreign aid increases the investment in the country, the capacity to import technology and capital goods, capital production and also promote changes in the country. Perfect utilization of foreign aid with the help of right policies increases the innovation and development in every sectors, introduce the new technologies, reduce the level of poverty in the country which in turn increases the economic development.

Trade

Two countries get many benefits in trade like increase in relations, communications, variety of particular product from different places, increase in employment, mutual gains from exchange, labor force participation rate. Both of the country have specialization in producing goods with the lowest possible cost. So because of trade both country decreases the rate of risk (McEachern, 2012, p. 268).

Tariff and U.S jobs

It is the strategy to protect the US job. Most of the countries restricted the import in order to protect the country from extra expenditure but US increases the tariff on the import. In this way, US do less import and high export, which in turn increases the employment rate in US (McEachern, 2012, p.268).

Trade Restriction

Domestic producers do not like to compete with foreign producers, workers loses their competitive advantages, country with limited natural resources are the winners form trade restriction because they have ...