Farmers in developing countries want Canada to reduce the subsidies that it gives to Canadian farmers because subsidized agricultural products from Canada:
A) lead to agricultural surpluses and lower prices for farmers in developing countries.
B) raise the world price of agricultural products.
C) have led to a global shortage of agricultural products.
D) have led to an increase in the demand for agricultural products from the developing world.

Question

Quizplus · Accepted Answer

Subsidized agricultural products from Canada leads to an increase in the supply of agricultural products in the global market. This, in turn, drives down the prices of agricultural products, creating difficulties for farmers in developing countries. The surplus agricultural products can also lead to a reduction in demand for agricultural products from developing countries, further compounding the problem. Therefore, farmers in developing countries want Canada to reduce the subsidies that it gives to Canadian farmers.

Farmers in Developing Countries Want Canada to Reduce the Subsidies