Based on this passage, what is the most likely reason the United States
government objects to the Chinese subsidies?
O A. American manufacturers face competition from cheaper Chinese-
made solar panels, because the subsidies lower Chinese
production costs.
O B. American builders face a shortage of solar panels, because the
subsidies reduce the number available for shipment to the United
States.
O c. American shipping companies lose business, because the
subsidies reduce international trade between China and the
United States.
O D. American consumers must pay more for solar panels, because the
subsidies make solar panels more expensive.
Answers
Based on the information provided in the passage, we can confirm that the most likely reason that the United States government objects to the Chinese subsidies is that American manufacturers face competition from cheaper Chinese- made solar panels, because the subsidies lower Chinese production costs.
What are subsidies?Subsidies are Government provided funds intended to help businesses. These are often given to manufacturers. Subsidies allow manufacturers to lower production costs and serve to keep prices low and controlled. How this affects American Economy This has an impact on the American economy due to the fact that Chinese products arrive in the United States at much lower prices. This causes a dangerous situation for American-based manufacturers that cannot compete with the lower prices. For this reason, the Government applied a tax to all imported Chinese goods from manufacturers that have received subsidies.Therefore, we can confirm that the United States Government objects to Chinese subsidies due to the fact that they lower production costs for Chinese manufacturers which allows them to sell at prices that endanger American manufacturers.
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