Question

Suppose that the United States decided to subsidize a major competitive effort by the semiconductor industry to bring to market the next generation computer chip. Under the current rules of the WTO and GATT, the U.S. effort is

allowed as long as the subsidies are a small percent of the total cost.

allowed as long as the subsidies do not involve a direct payment to the industry.

not allowed.

neither allowed nor disallowed.

Answer 1

Answer:

Explained below.

Explanation:

According to the current rules of the WTO(which is also known as World Trade Organization) and as well as GATT(which is known as The General Agreement on Tariffs and Trade), the United States effort is  been allowed as long as the subsidies(which is also known as government incentive) do not involve a direct payment to the industry.