With tied aid, aid recipients are required to use the aid to purchase goods and services from the donor country. This is done with the intention of promoting exports from the donor country and creating a market for their products. MNC investment depending on tax concessions and following World Bank/IMF conditionality are not directly related to tied aid.

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With Tied Aid

Question 28

Multiple Choice

With tied aid

A) MNC investment depends on tax concessions.
B) aid recipients must use the aid to purchase goods and services from the donor.
C) aid recipients must follow World Bank/IMF conditionality.
D) all of the above.

Correct Answer: