Russian gas monopoly Gazprom sells gas to Russian industrial companies at one-sixth the price it charges European buyers. This _____ would have a significant influence on the balance of trade between Russia and other European nations.

Question

Quizplus · Accepted Answer

Gazprom selling gas at a lower price to Russian industrial companies than to European buyers is an example of a subsidized industry. This means the domestic industry is receiving financial support to reduce its costs, which can affect international trade dynamics by potentially making Russian goods cheaper and more competitive abroad, thus influencing the balance of trade.

Russian Gas Monopoly Gazprom Sells Gas to Russian Industrial Companies