Because export subsidies tend to result in domestic exporters charging lower prices on their goods sold overseas,the home country's:

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When export subsidies are offered, the domestic exporters charge lower prices on their goods, making them more competitive in foreign markets. This leads to an increase in export volume, but the lower prices reduce export revenues. Additionally, as the domestic currency becomes stronger due to higher export demand, the terms of trade worsen because the country can buy fewer imports for the same amount of export earnings.

Because Export Subsidies Tend to Result in Domestic Exporters Charging