Promote production of domestic cotton

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Reference no: EM131238725

When countries such as the U.S. promote production of domestic cotton, developing countries that produce cotton are hurt. Why?

A. By increasing cotton? supply, the U.S. limits ability of comparative advantage cotton producers to exploit their production opportunities.

B. The U.S. does not hurt developing? countries, since all countries benefit from lower cotton prices.

C. The U.S. subsidies force poor countries to offer their own subsidies.

D. The U.S. production of cotton makes it difficult for developing countries to produce in related industries such as clothing and apparel.

Reference no: EM131238725

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