Single Answer MCQ
Q-00045569
How do subsidies provided by developed countries to their farmers affect global trade?
1
They enhance competition in developing countries.
2
They reduce the price of agricultural products sold abroad.
3
They eliminate trade barriers altogether.
4
They ensure fair trade practices.
Answer and Solution
Answer
B. They reduce the price of agricultural products sold abroad.
Solution:
Subsidies result in lower prices for exported agricultural goods from developed countries, which can undermine farmers in developing nations trying to compete in those markets.
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