In marketing a new product in a foreign nation,Mega Computer was surprised to see the very low prices of its local competitor's models.Subsequent investigation revealed that the domestic businesses had received money from the government.Mega now knows what a(n)________ is.
A)subsidy
B)tariff
C)embargo
D)local content law
E)quota

Question

Quizplus · Accepted Answer

A subsidy is financial assistance provided by the government to local businesses, allowing them to offer lower prices than foreign competitors.

In Marketing a New Product in a Foreign Nation,Mega Computer