__________ is a payment by the government to exporters to permit them to reduce the selling prices of their goods so they can compete more effectively in foreign markets.

Question

Quizplus · Accepted Answer

An export subsidy is a payment made by the government to the exporter, which helps them to lower the price of their goods and make them more competitive in the foreign market. A import subsidy, on the contrary, is a payment made by the government to the importer, which helps them to pay less for imported goods. A tariff, on the other hand, is a tax imposed on goods that are imported from other countries, which makes them more expensive and less competitive in the domestic market. Therefore, the answer is A.

__________ Is a Payment by the Government to Exporters to Permit