The Vietnamese government wants to improve the country's environment. It is offering $200,000 for the next five years to any manufacturing company that reduces its pollution output by 20% over the next year. Death co, a shoe manufacturer, has a factory that emits a large number of pollutants. Death co has also struggled to remain competitive over the years, due to the large number of shoemakers throughout the world. Death co makes some changes to its factory and successfully lowers its pollution outputs by 25%. It receives the $200,000 and is able to purchase new equipment that helps its factories work more efficiently. They can now sell their shoes for a significantly lower price. Happy co, a Cambodian shoe company, does not like this and feels that Death co has been subsidized by the Vietnamese government. Which of the following, if true, would be most likely to show that there is an actionable subsidy: 

The $200,000 was directly transferred from the Vietnamese government 

Death co greatly benefited from the $200,000 

The $200,000 led to Death co being able to dump their products in other countries 

Only Death co could possibly reduce its pollution output by 20%

Answer rating: 100% (QA)

Based on the World Trade Organizations WTO stipulations a subsidy is considered actionable or counte... View the full answer