In Xenonauts, the funding you receive from the Funding Nations is absolutely vital to your survival throughout the game, considering that you cannot manufacture and sell equipment at a profit.
At the start of the game there are ten funding nation blocs, each representing an area of the world, and the nations within. Though whether each nation within a bloc is participating in the Xenonauts program is not made explicit.
The Xenonauts start the game with $1.5 million.
Normally players will elect to establish a base in either North America, Europe or South East Asia, due to the large amount of funding they each provide.
(Values are out of date)
Every successful interception of alien UFOs will increase your relations, and funding, with the closest nation bloc. Performing ground assaults on crashed UFOs does not increase or decrease your relation with the funding bloc.
UFOs performing a mission will generate events, these events will lower the Xenonauts relationship, and funding, with the affected funding bloc. Thus it is important to intercept UFOs to prevent them from preforming their missions and lowering your funding, as a single UFO can cause a significant dip in relations if left alone.