From the donor's perspective, the advantage of tied foreign aid is that it can have some economic impact in the home nation, while untied foreign aid may not.

Question

Quizplus · Accepted Answer

Tied foreign aid requires the recipient country to spend the funds or resources on goods and services from the donor country, which can stimulate the donor's economy by creating demand for its exports. Untied foreign aid, on the other hand, allows the recipient to spend the aid on goods and services from any country, potentially benefiting other economies instead of the donor's.

From the Donor's Perspective, the Advantage of Tied Foreign Aid