Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In an effort to promote economic development and investment in its domestic industries, the government of Thailand has implemented an economic and trade stimulus program,

In an effort to promote economic development and investment in its domestic industries, the government of Thailand has implemented an economic and trade stimulus program, which includes a variety of measures. Which of the following measures is most likely to be considered a prohibited subsidy under the GATT agreement? Group of answer choices The Thai government established and funded a Textile Research Institute to engage in research and development related to textiles and garment production where the results of the research are distributed at no charge to all textile manufacturers in Thailand. The Thai government has identified several sectors of the economy as "strategic," including the electronics industry. For these strategic sectors, the Ministry has instituted a system of currency supports to protect manufacturers of electronics products from fluctuations in exchange rates that might affect their export earnings. The Central Bank of Thailand will provide an exchange rate of not less than 200 baht to the U.S. dollar. The present exchange rate is 171 baht to the U.S. dollar. There are three manufacturers of ceramic floor and wall tiles in Thailand. The Government Service Investment Corporation (GSIC) of Thailand bought 100 million Thai baht (the Thai currency) worth of stock in the three ceramic tile manufacturers. The GISC paid 150 baht per share. On the Thai Stock Exchange, the stock in these companies trades at 80 to 100 baht per share. In order to encourage econo

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Business

Authors: William M. Pride, Robert J. Hughes, Jack R. Kapoor

6th edition

1337386928, 9781337670975 , 978-1337386920

More Books

Students also viewed these Economics questions