Which groups will be harmed the most as a result of the WTO's elimination of agricultural subsidies?
A) agricultural exporters in smaller nations without subsidy programs because world food prices will rise
B) agricultural consumers all over the world because prices will be higher
C) agricultural producers in nations that subsidize their production
D) governments of rich nations that will have to provide support to farmers who are hurt

Question

Quizplus · Accepted Answer

Agricultural producers in nations that subsidize their production will be the most harmed by the elimination of agricultural subsidies because they will lose their competitive advantage in the global marketplace. Without subsidies, their production costs will increase and they will not be able to sell their products at the same low prices. This will lead to a reduction in their economic activity and potentially higher unemployment rates.

Which Groups Will Be Harmed the Most as a Result