Why Does the WTO Consider Food Aid to Poor Nations

question 68

Multiple Choice

Why does the WTO consider food aid to poor nations to be an "indirect subsidy"?

• A) It always has to be brokered by a third party.
• B) Poor nations have to pay for it in other ways.
• C) It enables firms to increase exports, partially paid for by the government.
• D) It only works with small farmers rather than large agribusiness.

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Definitions:

Days' Payable Outstanding

A financial metric that calculates the average number of days it takes a company to pay its invoices from trade creditors.

Accounts Payable

The amounts a business owes to its lenders or suppliers for transactions involving goods and services bought on credit.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, required to transform raw materials into finished goods.

Work in Process Inventory

The value of goods in production but not yet completed, often considered an asset on the balance sheet.