An export subsidy will cause the terms of trade of the country to and will the country.
A)importing; suffer; benefit
B)exporting; improve; benefit
C)importing; improve; harm
D)importing; suffer; harm
E)exporting; suffer; harm

Question

Quizplus · Accepted Answer

An export subsidy makes a country's exports cheaper, worsening its terms of trade by receiving less for its exports relative to imports, which can harm the exporting country's economy.

An Export Subsidy Will Cause the Terms of Trade of the Country