Farmers in developing countries want the United States to reduce the subsidies that it gives to American farmers because subsidized agricultural products from the United States:

A. raise the world price of agricultural products.

B. has led to an increase in the demand for agricultural products from the developing world.

C. has led to a global shortage of agricultural products.

D. lead to agricultural surpluses and lower prices for developing country farmers.

Question

Business

Leah Burnett

9 March, 23:25

Farmers in developing countries want the United States to reduce the subsidies that it gives to American farmers because subsidized agricultural products from the United States:

A. raise the world price of agricultural products.

B. has led to an increase in the demand for agricultural products from the developing world.

C. has led to a global shortage of agricultural products.

D. lead to agricultural surpluses and lower prices for developing country farmers.

+3

Answers (1)

Know the Answer?

Lilliana Rowland · Answer 1

The correct answer is option D.

Explanation:

The American government provides subsidies to its farmers. These subsidies reduce the cost of production for the farmers and they are able to produce more at a lower price.

As a result, the consumers prefer agricultural products from the US, since they are cheaper than the domestically produced products in the developing countries.

Since their goods are not sold as much, the domestic producers are left with surplus and have to sell their products at a lower price.

That is why developing countries want the US government to reduce agricultural subsidies.