Question

Domestic telecommunication companies in the United States are struggling due to foreign competition. How can the US government help to resolve this situation?

A. The government should implement subsidies as they would help domestic businesses be able to afford to lower the prices of their goods and thus become more competitive.

B. The government should implement subsidies as they would limit the amount of foreign goods available to consumers and thus help domestic producers become more competitive.

C. The government should implement quotas as they would help domestic businesses lower the costs of labor and capital goods on which they rely and thus become more competitive.

D. The government should implement quotas as they would artificially raise prices for foreign goods relative to domestic goods and thus help domestic producers become more competitive.

Answer 1

A. The government should implement subsidies as they would help domestic businesses be able to afford to lower the prices of their goods and thus become more competitive.

Step-by-step explanation:

The telecommunication industry comprises of organizations that make correspondence conceivable on a worldwide scale, regardless of whether it is through the telephone or the Internet, through wireless transmissions or links, through wires or remotely. Recently, the media communications part comprised of a club of substantial national and provincial administrators. Since 2000s, the industry was cleared up in quick deregulation and development.

Answer 2

A. The government should implement subsidies as they would help domestic businesses be able to afford to lower the prices of their goods and thus become more competitive.

Step-by-step explanation:

The government adoption of subsidies in order to support domestic telecommunication is the most effective solution in the long run. Domestic firms will be able to compete with lower prices as the cost and expenses structure would have a lighter burden over revenue.