Which action is an example of the United States using economic influence as a tool of foreign policy?

A. Providing funding for another country to establish a clean water program
B. Setting up an embassy to help Americans who wish to travel to a country
C. Signing a treaty to improve environmental protection
D. Providing weapons and advice to help a country defeat a terrorist group

Respuesta :

The first alternative is correct (A).

Foreign policy can be done in a variety of ways within diplomacy. Countries can negotiate treaties, make foreign investment, form economic blocs, etc.

However, countries can make in-kind transfers to help develop projects of social interest and humanity. The first alternative is an example of this, the US is a rich country and can eventually use its economic power to help other countries in projects such as water purification. This is a way to strengthen ties with a partner nation.

Correct answer:  A. Providing funding for another country to establish a clean water program.

Explanation:  The question asked about using economic influence as a tool of foreign policy.  Providing funding is an economic activity.  Imposing  trade sanctions against a country would be another way of exercising economic influence.

As for the other responses ...

  • Providing weapons and counter-terrorism advice would be  more a use of military influence (rather than economic).
  • Setting up an embassy would be an exercise of diplomatic influence.
  • Signing a treaty would be a political measure (not an economic one).