are financial incentives governments give to domestic producers to boost exports. These subsidies aim to make local goods more competitive globally by lowering prices, increasing exports, and supporting domestic industries.
The effects of are complex. Domestic producers benefit from reduced costs and increased exports, while foreign consumers enjoy lower prices. However, subsidies can strain government budgets and distort , often resulting in negative overall welfare effects for the subsidizing country.
Export Subsidies
Export subsidies in international trade
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Financial assistance provided by governments to domestic producers encourages exports
Aims to make domestic goods more competitive in international markets by reducing prices
Increases the quantity of exports improves the country's trade balance