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)allowed as long as the subsidies are for developing a "precompetitive" technology.

Question

Quizplus · Accepted Answer

Under the current rules of the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT), subsidies for research and development efforts are allowed as long as they are for developing "precompetitive" technology. This is designed to encourage innovation and technological advancement without directly distorting competition in the market.

Suppose That the United States Decided to Subsidize a Major