Suppose That the United States Decided to Subsidize a Major

question 25

Multiple Choice

Suppose that the United States decided to subsidize a major research and development effort by U.S.firms in the semiconductor industry.Under the current rules of the WTO and GATT,the U.S.effort is

• A)allowed as long as the subsidies are a small percent of the total cost.
• B)allowed as long as the subsidies do not involve a direct payment to the industry.
• C)not allowed.
• D)neither allowed nor disallowed.
• E)allowed as long as the subsidies are for developing a "precompetitive" technology.

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