A. the transportation and storage cost increased tremendously
B. proponents of basic-needs attainment opposed food-aid
C. U.S farm interests wanted to reduce surplus grain stocks
D. agricultural production suffered excessively due to weather changes

A. the brain drains from LDCs to DCs
B. the price role of political and credit-market risk in many LDCs
C. the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs
D. the fat that the DC capital market is perfectly competitive

I- increasing the LDC’s technological dependence on foreign sources resulting in less technological innovation by local workers
II- Hamper local entrepreneurship and investment in infant industries
III- increase unemployment rates from unsuitable technology
IV- Restrict subsidiary exports when they undercut the market of the parent company
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II, III and IV

I- Finance a savings gap or balance of payments deficit
II- Obtain foreign technology by adapting existing processes
III- Generate appropriate technology by adapting existing processes
IV- Employ domestic labor, especially in skilled jobs
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II, III and IV

A. is technical aid given by IMF
B. is given directly by one country to another
C. is aid with repayment in inconvertible currency
D. is a loan at bankers’ standards

I- equals the absolute value of the balance on capital account
II- is financed by savings
III- is net grants minus remittances
IV- includes goods services and unilateral transfers
A. I and II only
B. II and III only
C. I and IV only
D. None of the above

A. and the dangers of free capital movements for LDCs with poorly developed financial institutions
B. and the dangers of a trade deficit
C. and the external openness of income growth among the poorest 40 percent of LDCs
D. and MNC domination and its effects on income distribution

A. investors are directly involved in managing the operations
B. as in direct investment investors export goods and services abroad
C. investors transfer the technology to local investors
D. investors have no control over operations

A. technical assistance to stock market and financial market problems
B. loans for post-World War II reconstruction
C. short-term credit for international balance of payments deficits
D. bonds denominated in U.S dollars as a loan to LDCs

A. negative effect on economic growth during the simultaneous five-year period but has a significantly positive effect on growth in the subsequent five years
B. no effect on economic growth during the simultaneous five-year period but has a significantly negative effect on growth in the subsequent five years
C. a significantly positive effect on growth in the subsequent five years
D. an exponentially negative effect on growth ten years