An export subsidy helps reduce the selling price of a product by allowing individual producers to charge less and still cover all of their production costs.

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An export subsidy is a form of financial assistance provided by governments to their domestic producers in order to boost exports. This subsidy helps to reduce the cost of production and lowers the selling price of the product, allowing individual producers to charge less while still covering their production costs. This makes their products more competitive in the global market, and helps to increase exports.

An Export Subsidy Helps Reduce the Selling Price of a Product