Subsidies allow young and/or critical industries to charge lower prices and to compete with more efficient foreign producers, while permitting consumers to pay the world price rather than the higher prices associated with tariffs or quotas on foreign goods.

Question

Quizplus · Accepted Answer

Subsidies can help industries to become more competitive and reduce the prices charged to consumers. This can be particularly important for new or developing industries that may struggle to compete with more established foreign producers. Additionally, subsidies can help to avoid the higher prices associated with tariffs or quotas on foreign goods, which can be passed on to consumers.

Subsidies Allow Young And/or Critical Industries to Charge Lower Prices