Economic theory suggests that if France is a net importer of automobiles, whose production is subsidized by the Korean government, the overall welfare of France decreases because of the Korean subsidy.

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Economic theory suggests that if Korea subsidizes its automobile production, it lowers the production cost, which can lead to lower prices for French consumers. This can increase consumer surplus in France, potentially increasing overall welfare despite France being a net importer. The subsidy effectively transfers some of the Korean taxpayers' money to French consumers.

Economic Theory Suggests That If France Is a Net Importer