WTO rules allow subsides
A)when there are external economies.
B)of "precompetitive" activities such as research.
C)when there are internal economies.
D)when there are positive externalities in production.

Question

Quizplus · Accepted Answer

WTO rules allow subsidies for "precompetitive" activities such as research, as they are considered to have positive spillover effects on the economy as a whole. Subsidies for other reasons such as external economies, internal economies or positive externalities in production may be subject to certain limitations or restrictions under WTO rules.

WTO Rules Allow Subsides