In: Economics
9)Which of the following subsidies is prohibited under World Trade Organization (WTO) rules?
Multiple Choice
a) Subsidies to assist firms in meeting environmental regulations
b) Subsidies to assist disadvantaged regions within the exporting country
c) Subsidies to encourage firms in a developed country to export more
d) Subsidies to research and development
Option B is the answer
Subsidies to assist disadvantaged regions within the exporting
country. Because they are basically developed to change the
international trade and sometimes they are seemed to hurt other
countries in a way or another.
Option A says that they are the subsidies to assist firms in meeting environmental regulations. The WTO encorages the environmental protection and other awareness about the surroundings so it shouldn't be prohibited by WTO rules
Option C says that subsidies are giving to encourage firms in a developed country to export more in the market, due to the advancements in the developed country the WTO never prohibit these kinds of subsidies in a developed country.
Option D says that subisidies to research and development , WTO always care about the developmental and researc purposes and make neccessary actions to make it more real and accurate. So it shouldn't ne prohibited by the WTO rules and regulations.