Under the WTO's rules, which of the following is NOT a prohibited subsidy? The government gives a tax incentive to companies that export 100% of what they produce The government gives a tax incentive to companies that use 30% domestically produced components The government gives a tax incentive to companies that invest in Research and Development (R&D), but does not require them to export any specific amount or use a specific amount of domestic content
Under the WTO's rules, which of the following is NOT a prohibited subsidy? The government gives a tax incentive to companies that export 100% of what they produce The government gives a tax incentive to companies that use 30% domestically produced components The government gives a tax incentive to companies that invest in Research and Development (R&D), but does not require them to export any specific amount or use a specific amount of domestic content
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Under the WTO's rules, which of the following is NOT a prohibited subsidy?
The government gives a tax incentive to companies that export 100% of what they produce
The government gives a tax incentive to companies that use 30% domestically produced components
The government gives a tax incentive to companies that invest in Research and Development (R&D), but does not require them to export any specific amount or use a specific amount of domestic content
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