Question

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

Answer 1

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).

Answer 2

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.