Which of the Following Is Not an Example of an International

question 1

Multiple Choice

Which of the following is not an example of an international transfer payment?

• A) Myrna, a U.S. citizen, remits a gift of $300 to her aunt in Albania.
• B) The U.S. government has pledged $100 million in foreign aid to Ethiopia.
• C) The Melinda and Bill gates Foundation make a donation of $50 million dollars to an orphanage in Lithuania.
• D) The Red Cross purchases $50 million dollars of equipment for its operations abroad.

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Definitions:

Import Competition

The competition that domestic firms encounter from the products and services of foreign producers.

Trade Barriers

Regulations or policies implemented by countries to control the import and export of goods and services.

Import Quotas

Limits set by a government on the quantity or value of certain goods that can be imported into a country.

Domestic Producers

Companies or individuals that produce goods and services within their own country.