Which of the following is an example of a bilateral aid?
A)A U.S.commercial bank loan to a Mexican investor
B)The establishment of a Brazilian subsidiary by a German firm
C)U.S.humanitarian aid to Somalia
D)A trade credit extended to Morocco for the purchase of Iranian oil
E)A World Bank loan to Kenya

Question

Quizplus · Accepted Answer

Bilateral aid refers to the transfer of resources from the government of one country to another country. Hence, U.S. humanitarian aid to Somalia is an example of bilateral aid as it involves the transfer of resources from the U.S. government to the government of Somalia.

The other options do not involve the transfer of resources from one country's government to another and hence are not examples of bilateral aid. Option A involves a commercial bank loan and is a private transaction between a bank and an investor, while option B involves the establishment of a subsidiary and is a business transaction between two companies. Option D involves a trade credit and is a transaction between two countries but does not involve the transfer of resources from one government to another. Option E involves a loan from an international organization and is not a bilateral aid.

Which of the Following Is an Example of a Bilateral