In general, an export subsidy:
A)discourages foreign sales exporters in favor of domestic sales.
B)encourages firms to export rather than sell domestically.
C)penalizes producers that export.
D)justifies government involvement in helping firms export.

Question

Quizplus · Accepted Answer

An export subsidy is a payment or other incentive given to domestic producers to encourage them to export their products. It is intended to make exporting more profitable than selling domestically, thus encouraging firms to export. Therefore, choice B is the correct answer.

In General, an Export Subsidy