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.

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.

To learn more about subsidies visit:

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GeorgeArliss GeorgeArliss · Answer 2 · 2024-01-29T15:31:39-05:00

Final answer:

The U.S. government likely objects to Chinese subsidies because A. they lower production costs for Chinese manufacturers, allowing them to sell cheaper solar panels and unfairly compete with American manufacturers.

Explanation:

The most likely reason the United States government objects to Chinese subsidies is that American manufacturers face competition from cheaper Chinese-made solar panels, as the subsidies lower Chinese production costs. This situation gives Chinese solar companies an unfair advantage in the global market by artificially reducing their costs and enabling them to sell their products at lower prices, which challenges the competitiveness of American solar panel producers.

Trade barriers and subsidies can distort the market, making it difficult for unsubsidized competitors to match the prices of subsidized goods. Furthermore, the passage indicates concern over the impact of such subsidies on local industries, job losses, and the overall economy, aligning with the concept that subsidies to foreign exporters can harm domestic producers.