Question

In: Economics

Which of the following subsidies is prohibited under World TradeOrganization (WTO) rules?Subsidies to research...

Which of the following subsidies is prohibited under World Trade Organization (WTO) rules?

  • Subsidies to research and development

  • Subsidies to encourage firms in a developed country to export more

  • Subsidies to assist firms in meeting environmental regulations

  • Subsidies to assist disadvantaged regions within the exporting country

Solutions

Expert Solution

Option b: subsidises to encourage firms in a developed country to export more.

Because it can discourage the domestic market so thats why most subsidies directly link to the volume of exports are prohibited by WTO

 


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