Domestic price supports on, say, sugar

Question

Quizplus · Accepted Answer

Domestic price supports on products like sugar typically involve the government ensuring that domestic prices remain above the world market level to support local producers. This often leads to reduced imports of foreign sugar because the domestically produced sugar is made more competitive in the local market compared to the cheaper foreign sugar. This mechanism acts as a trade barrier by making it less economically viable for foreign producers to compete in the market with supported domestic prices.

Domestic Price Supports On, Say, Sugar