Food aid tends to increase food prices in the receiving country, increasing the incentive for people to grow crops.

Question

Quizplus · Accepted Answer

Food aid, especially when provided in large quantities, can actually lower food prices in the local markets of the receiving country. This is because the increased supply of food leads to a surplus, which can depress local prices and potentially disincentivize local production if farmers cannot compete with the lower prices.

Food Aid Tends to Increase Food Prices in the Receiving