Which of the following subsidies is prohibited under WTO rules?
A)Subsidies to research and development
B)Subsidies to assist disadvantaged regions within the exporting country
C)Subsidies to assist firms in meeting environmental regulations
D)Subsidies to encourage firms in a developed country to export more

Question

Quizplus · Accepted Answer

Subsidies to encourage firms in a developed country to export more are considered export subsidies, which are prohibited under WTO rules as they distort international trade. Subsidies to research and development, to assist disadvantaged regions within the exporting country, and to assist firms in meeting environmental regulations may be allowed under certain conditions or subject to certain limitations, depending on their impact on international trade.

Which of the Following Subsidies Is Prohibited Under WTO Rules