The WTO/GATT:
A)prefers that countries use export subsidies rather than production subsidies on its agricultural production.
B)prefers that countries use production subsidies rather than export subsidies on its agricultural production.
C)has no preference between export subsidies and production subsidies on countries' agricultural production.
D)wants export subsidies to replace production subsidies.

Question

Quizplus · Accepted Answer

The WTO/GATT prefers that countries use production subsidies rather than export subsidies on its agricultural production. This is because export subsidies can lead to unfair competition and distortions in trade, while production subsidies provide support for domestic production without affecting international market prices.