Is an export subsidy a good way for a large nation to help a
Poor nation by exporting products to them at lower prices?
A)Yes, and it is a method recommended by the WTO.
B)It can help in some cases.
C)No; it creates inefficiency in production, and it hurts firms (especially small farmers) who cannot compete.
D)Yes; but it can get tricky when the importers demand even more quantity at lower prices.

Question

Quizplus · Accepted Answer

Export subsidies can distort market prices and create inefficiencies, harming local producers in the importing country who cannot compete with the subsidized prices.

Is an Export Subsidy a Good Way for a Large